Abstract of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

Purpose – The purpose of this project is to investigate the impact of risk management, as a tool of internal control, on higher education institutions performance in the UK specifically business and engineering schools.

Design/methodology/approach – The data in this research were collected through a well-defined questionnaire. The Descriptive and correlation research method, along with questionnaire survey was conducted.

Findings – As compared to the corporate sector, risk management is still in the initial stages of the formalization for the higher education institutions. The research findings indicate that in business schools, the rent seeking by the entrepreneurs does not even encourage the risk management by the educational institutes.

Practical implications-  For the accreditation agencies and the regulators, the main areas to take into consideration include as a part the risk management. There are no evidences that can prove for the immense consideration of the risk management at the educational institutes. This research work will provide the basis for the risk management strategies of the educational institutes.

Originality/value – For the business schools, this research work is providing with the building blocks for analysing the risk management.

Keywords: Risk Management, Internal Control, Performance, Higher Education, Business School, Engineering School.

Paper type: Research paper

1. Introduction of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

Risk management is the most crucial managerial responsibility, which is aimed to identify the possible events that may affect the future of an organization. The executive management of an organization and workers both participate in risk management. Risk management is a significant process in High Schools. Effective risk management is crucial for the success of an organization including high schools. Risk management provides qualitative information about an organization, which is crucial for strategic decision making (Verdina, Kašėtienė, Liela, 2010). In 2003, The National Association of College and University Business Officers (NACUBO) highlighted the importance of risk management in higher education. The contents of that report were primarily focused on improving the risk management processes in high schools. It has become obligatory for the universities to evaluate and assess their risk management systems and use audits to analyse the efficacy of their control (Arif, 2014).

Risk management is a dynamic process that takes place throughout the life of a project. A typical risk management process comprises of four main stages. The first stage of a risk management process is risk identification. This phase is intended to recognize the possible future risks. The second stage is a risk assessment in which possible harms, associated with identified risks, are assessed. The third stage is response planning, in which strategic planning to respond to those risks is carried out. The final stage is reviewing in which active monitoring of the risk management process is carried out (Wysocki, 2004). The process of risk management is primarily focused on the identification and assessment of risks and planning to effectively manage those risks. The success of every project depends primarily on the in time identification of risks and successful management of those risks. Poorly managed project risks may have negative implications for the achievement of project objectives (Bhimani., 2009).

Risk management is important for every operation and process of an organization, as it increases the success rates of those operations. The success of an organization significantly depends on rational decision making, while risk management facilitates such decision making. This paper is created to increase the awareness of risk management as a tool of internal control on higher education institutions' performance by considering a case from UK business and Engineering schools. Corporate governance and stakeholder of educational organizations play an important role in its management practices and financial situations. The past decades had been a period of technology advancement and industrial reform; many business industries were upgraded to new approaches. Educational organizations have also gone through a progressive reform in this period and evolved as entrepreneurial organizations. Educational organizations are now competing on global platforms. Schools are working to offer multiple degree programs, and various delivery methods for education in order to maximize their profits. The entrepreneurialism is increasing in educational organizations, and many factors count for this increase. This entrepreneurial setting, in educational organizations, is transmuting them into risk-taking organization (Hommel, 2016).

The financial funding of higher education organizations has become extremely volatile and sensitive to instabilities with regard to the school’s competitiveness.  The fluctuation in the institute’s competitiveness could be a result of a change in its ranking position or any demographic change. Moreover, the institute’s competitiveness is also affected by the policies and regulations laid by the government. In such a dynamic environment, risk management becomes inevitable for schools or any educational organization. In such cases “Risk” is measured in terms of “Returns.” The theme of this paper revolves around the extent to which business and engineering schools have established effective risk management. Also, it is working as a tool of internal control of their performance (Kirby, 2004).

Internal control is simply denoted to a system of check and balance. Within an organization, internal control is integrated with risk management. The term internal control can be defined in different ways. It is a process that is affected by corporate governance of an organization. Internal control is also linked with the provision of assurance towards the achievement of goals and objectives. Also, it helps to maintain the efficacy of operations in an organization. Moreover, internal control is also involved in financial reporting and making acquiescence with government policies and regulations (Hommel, 2016).  

1.1 Motivation & The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

Higher education institutes are dealing with intensive challenges from government agencies and from the public domain. It is indirectly emphasizing the need for risk management. The appropriate approach to risk management lacks in higher education institutions. Higher education institutes also required adequate planning for enterprise risk management. There is no or very limited research data available in this context. Therefore, this study is aimed to investigate the impact of risk management as a tool of internal control on higher education institutions' performance in the UK specifically business and engineering schools. This paper presents an analysis for the results of a survey of business and engineering schools in the UK. The descriptive research design was focused on inquiring about the risks culture in business and engineering schools. Also, it is determined that how these schools identify, evaluate and manage those risks. We applied correlative analysis and model regression by using control variables. The results were explained with the help of descriptive statistics and discussed in detail.

1.2 Contribution of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

This study contributes to the literature in several ways. First of all, it represents the extent of the risk management system and its implementation in business and engineering schools.

The practical implications of this study include implementation of management concepts from theory to increase the effectiveness of risk management as a tool for internal control in higher education institutes. This study provides an important insight into risk management and internal control as a part of corporate governance of higher education institutes. This study also offers adequate information about technical basis of risk managing and internal control. The findings of this study also provide important insight into the growing fraud and risk incidents in educational organizations. This study also develops an alternative view of the role of risk management as a tool for internal control in educational organizations. This study argues that entrepreneurialism is the primary reason for increased risk-taking and fraud incidents in educational institutes, which seriously affects their performance. This study reflects insight into the characteristics of business and engineering schools but the findings of this study can be generalized to all higher education institutes.

Academic contribution: There is no prior study present on risk management as a tool for internal control in Higher Education institutes in UK. Therefore, this study contributes to filling this research gap and findings of this study will encourage researchers in other regions to carry out research on this topic. The higher education institutes are considered as primary priorities for country’s development. The findings of this research help their management to increase their operational effectiveness along with financial efficiency through application of risk management as a tool for internal control.

The next section provides a theoretical discussion to support the research argument. Research methodology, data collection and research techniques are presented in section 3. Empirical findings are presented in sections 4. And section 5 presents a conclusion on all the discussions.

2.Theoretical Foundations of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

 This section is aimed to provide a review of literature about risk management and internal control in context to academic organizations, specifically business schools and engineering schools. This section establishes the literature evidence related to the research topic. The primary objective of this section is to develop a clear understanding of the research area of this study. Besides, it represents the literature findings on the impact of risk management on internal control.

2.1 Risk management of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

Higher educational institutes such as business and engineering schools traditionally have a non-profit operational structure. The fundamental activities of such institutes are support core operations of program or degree with the main objective of knowledge generation and its effective transfer. Business and engineering schools have complex organizational settings. The typical management approach only focuses on command, control, and arrangement. McDaniel (2007) argued that higher education organizations have dual control system based on management and faculty control systems. They further discussed the potential management issues of higher educational institutes, including the absence of computable financial performance system, extensive and multidimensional institutional mission, additional funding that weakens the management of faculty.

Hommel (2016) offered a different viewpoint by stating that business and engineering schools operate in a suggestively different form of business organization, which necessitated the need for new change and approaches for better risk management and internal control. They continue to discuss the circumstantial factors that cause a catastrophe in analysis and strategic planning of higher education institutes and highlighted poor risk assessment is most prominent among other factors. The failure to manage risks effectively can lead to enormous challenges for an organization to achieve its primary objectives. McShane (2011) supported this discussion that risk management has become a crucial function of any business organization for its competitiveness and survival.

Abraham (2013) further added to this context about the possible risks for higher education organizations and identified that financial instability, economic environment, technology integration, student registration, retaining staff, hiring new talent, maintaining ranking, increasing competitiveness, and infrastructural changes could be potential risks for them. Higher education institutes require an effective risk management system. According to Hommel (2016), changing business environment emphasizing the need for better internal control and risk management for the success of any organization. The internal control system is considered as an integral component of the risk management system.

PWC (2013) studied the fraud risks in higher education organizations and discussed the findings of the International economic crime survey. The findings revealed that more than 50% of the higher education organizations have faced frauds in their institutes. Almost 34 per cent of those institutes were successful to identify such frauds while 38 per cent of those institutes did not perform risks evaluation and risk assessment during the year. The report further discussed about the identified frauds & risks in higher education institutes as follows:

·         Segregation of duties

·         Academic consultancy

·         Mandate Fraud

·         Examination Frauds

·         Corruption and Bribery

·         Philanthropic Income

·         Purchase card fraud

TEQSA (2014) discussed that adoption of an entrepreneurial model, requires higher education schools to finance their organizations with adequate cash flow. The performance of educational institutes is affected by several factors which may be interlinked with each other. Suomi (2013) emphasized the need for a formal risk management system to enhance the internal control of education institutes. However, empirical findings on formal risk managements system, specifically on business and engineering schools are very sparse. Denneen (2012) identified risk management in higher education institutes as an emerging field. Many educational institutes have faced frauds and intensifying financial challenges due to lack of inefficient risk management system. Brinkmann (2013) studied the important characteristics of an intelligent risk management system and suggested following factors,

·         control system to restricts the overburden from management

·         Increased tolerance levels for an organization

·         No haziness in risk management process

·         Internal control focused on developing essential knowledge.

2.2 Internal Control of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

Holopainen et al. (2006) provided a different scenario and studied the concept of internal control in context to the success of an organization and described internal control as a function than allow management to develop a more accurate picture of financial capabilities of an organization. Furthermore, internal control is a link between people and systems within an organization. Brinkmann (2013) further extended this discussion by suggesting that risk management is a mandatory activity of internal control of an organization. Internal Audit and Internal Control both are important practices under Good Corporate Governance practice.

Limitations of Internal Control of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

Hommel (2016) studied the function of internal control and emphasized financial constraints, human factors, and absence of system flexibility as limiting factors for internal control success. The achievement of operational and strategic objectives of an organization is only possible with an efficient system of risk assessment. Therefore, risk management can be an effective tool for internal control and enhancing the performance of an organization more specifically for business and engineering schools. Business and engineering school’s decision making is related to their market-based competitiveness. It requires an efficient risk management system for sustainability. In sum, it is postulated that the risk management system can serve as a tool of internal control on higher education institutions performance.

2.3 Risk Appetite Tolerance of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

According to Berlinger ( 2015), for any kind of risk management approach, the risk appetite is referred as an essential key. The requirements meetings are imposed according to the standards of corportae governance. The stakeholders are increasingly asking from the organization related to the risk management approaches.  They are concerned about the terms and techniques of risk appetite tolerance. It also includes the analyst, public and investors in order to express the clear concepts of the extent of their willingness to take risk for attaining their strategic objectives. In this particular area the institutes of risk management are playing a key role in managing the risk effectively. In this study the risk appetite tolerance is the terms or approach that organizations and individuals have to bear for the goodwill of the organizations. The educational institutes are keen to manage the risk for their organization and the organization wants to maintain risk appetite tolerance for their institutes (Berlinger, 2015).

2.4 Foreign Campus of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

In this study, the variables of the foreign campus are taken as the independent variables because it represents its particular relationship with the performance of the institutes. The engineering and business schools of the United Kingdom can perform ineffective and well manners, in case the branches and campuses of these institutes will be launched around the globe. The universities are opening their campuses across the borders in order to enhance their performance. There is a number of students who are seeking to study in a well-known organization, but they are unable to take admission to those schools due to the barriers of entry in the country. By considering all of these aspects the foreign campus is taken as the effective variables for the performance of the engineering and business schools of the UK.

2.5 Conceptual framework    of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

2.6 Hypothesis of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

H1: A positive significant relationship exists between internal control and higher education institutions' performances.

H2: Risk management practices tend to generate a positive significant impact on higher education institutions' performance.

H3: Foreign campus has a positive significant relationship with performance of higher education institutions

H4: Risk appetite has positive significant relationship with performance of higher education institutions.

3 . Study Design of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

In the methodology section, information covers areas such as study design as well as material and technique employed by the researchers to conduct this research work. The methodology also consists of information about research study exploring the concepts about the techniques used to collect research data, research methods, samples, and sampling techniques.  The instruments of the study are explained in the chapter that is required to ensure data collection from the selected research samples. The methodology section is also consisting of details about the validity and reliability of research data.

Secondary and primary data collection techniques are used in this research work to collect research data. Pre-existing data which is used for another project is referred as the secondary data obtaining source. However, the most appropriate source to obtain relevant research data is reviews of latest literature to find out useful information from secondary sources. It leads towards the previous data and explores the views of other authors on particular topics. The primary source data collection leads to the self-generation of the data. It includes the survey and questionnaire that is used as an essential key to assemble and obtain research data from the selected research samples.

Both research methods quantitative research and qualitative method of research studies are used in the implementation of this research plan to explore the most relevant data from research study. The qualitative research methods are utilized to exploring the concepts of the theory of the study related to risk management, internal control, and their effects educational institute’s performance.  (Taylor, 2015). The quantitative research methods are used to exploring generating the numerical data, and under this method the data is also analysed by using the various statically tools in order to measure the impacts of the variables on each other. The objective measurements are emphasized under the Quantitative methods (McCusker, 2015).

In order to test the study predictions, the simple random sampling method is used in this study. The data is collected from the 150 professionals of the engineering and business schools of the United Kingdom.  In this case ten schools are selected as the population, and the professionals of these schools are sample who will perform as respondents in order top provides the information related to the performance of the educational sectors due to the risk management and internal controls. These engineering and business schools are selected by searching the website of “ceebd.co.uk.” Then every third university is selected as sample in this study.  Meanwhile few of the universities are selected randomly at where I have approach to meet with the directors or head of the departments in order to fulfil the criteria of the study. Few of the universities are listed below which are selected from the (Ceebd.co.uk, 2019)  

·         American InterContinental University – London

·         Cranfield University, School of Management

·         University Leeds, Leeds University Business School

·         University of London

·         Loughborough University, Water, Engineering and Development Centre (WEDC

·         Mobility Oil & Gas

·         The University of Reading, School of Systems Engineering

The remaining three are those universities that are under my approach and in which I have access to collect the data.

3. Instruments of the Study of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

            The standard elements related to the process of corporate risk management can be easily covered by the survey design; the survey design and questionnaire are administrated to measure and collect the views of the respondents. The governance of risk management activities was asked from the participants by using this questionnaire as instrument for collecting the data in this study. The participants were asked to evaluate overall effect generated by the internal management control system and risk mitigation system of managers on outcomes and performance of the educational institutes. A five-level Likert scale is used in the research work to collect responses from respondents about internal control impact on organizational performance. On this Likert scale, levels are ranging as strongly agree, agree, neutral, disagree, and strongly disagree. This questionnaire contains two parts. The first part explains the information about respondents, and demographical profiling of the research samples is also discussed in brief detail in first (introduction) section of designed questionnaire. Another section of the questionnaire narrates about the construct that are used in this study.

3.2 Variables of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

By considering the study of Ulrich Hommel (2016) as the base papers few of the variables are adopted in order to measure the impacts of the risk management as internal control tools on the performance of the educational institutes. This impact is of risk management is measured, particularly in the context of the business and engineering schools of London.

There is total of five variables that are examined in this study, in order to measure the impacts of the variables. Performance of the educational institutes in the dependent variable meanwhile other four risk management, internal control, Risk Appetite Tolerance, and foreign campus are independent variables.

4.  Results and Analysis of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

Statistical package for social sciences (SPSS) software is used for the purpose of statistical data analysis. SPSS software is known as the most effective software to analyse and interpret the research results generated by the selected research variables. It provides good effects to measure the relationship between the variables. It is good tool for generating tables and graphs because it decreases all possible chances and likelihood of manipulation and falsification made in the data outcomes. SPSS data analysis can also present data validity and reliability for the research work to measure and show that data has internal consistency or not?

4.1 Reliability analysis of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

Interpretation of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

Reliability and validity of research data and results of statistical analysis. Additionally, the use of tables regarding the internal consistency of data research can show consistency of responses. The results generated from the measurement and calculation of Cronbach's Alpha are used as indicator towards the measurement of internal data consistency as it would be presented to show data consistency regarding internal control.  According to analysis, 0.737 is the value of Cronbach's Alpha testing. This value is greater than 0.7 which portrays the data is reliable for internal control, and consistency occurs for this variable of the data (Tavakol, 2011). Seemed like that the Cronbach's Alpha value for Risk management, Foreign Campus, Risk Appetite Tolerance and Performance of the higher education institutions is 0.769, 0.577, 0.742, 0.796, respectively. It represents data is reliable for all variables except Foreign Campus because the Cronbach's Alpha value for this is less than 0.7. It means data is moderately reliable for this variable.

    4.2 Descriptive statistics of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

The descriptive statics are used to measure the numbers of the variables along with their constructs. The number of items are also explained in this table.

 

 The summary distribution table shows results of central tendency measures, including mean or average value of responses. While standard deviation and mean values of all research data (and variables) are presented in the table.  It represents the mean value for all variables is greater than 3.5 which represents most of the respondents are agreeing with the statements and questions. The standard deviation value for all of the study variables is representing how these values are deviate from its mean value. 

4.3 Demographic profile of respondents of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

Interpretation of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

The table of age is representing the percentages of the age of the respondents who have participated in this research study.  The histograms are also illustrating the frequencies of the respondents according to their ages. There are 32.7% of respondents who are falling in the 44-54 years’ age groups, and this is the highest frequency of the respondents. It means most of the respondents are of 44-54 years old.

 

Interpretation of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

In the presented table of gender details, it is clearly presented that the female participants in this research work are only 70% of total respondents. Females had the duties of risk management. Reaming 30% is the male of the study.

Interpretation of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

The table of the Designation is representing most of the respondents are the head of departments. It shows 39% of the total respondents are the heads of the departments who are female and above 44 years old.

Interpretation of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

The table of the education level is representing most of the respondents are Ph.D. There are 64% respondents who have PhD degree.  This study shows most of the respondents are female and having a Ph.D. degree and performing the duties of the head of departments in the business and engineering schools of United Kingdom. These majorities of the respondents are more than 44 years’ age group. The above given histograms is also representing most of the respondents have PhD degree.  

4.4 Regression analysis of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

The impact generated by the independent variables on dependent research variables is analysed through the use of regression analysis. It also represents positive and negative relationships of the variables. The results of the analysis portray either the hypothesis is rejecting and accepting. By using the regression model the hypothesis is tested. Furthermore, regression model is applied as depicted in the study of the (Cornelius Kipkemboi Lagat, 2016) to generate results regarding the impact causes by internal risk management practices on the overall outcomes and performances of   educational institutes in the specified time duration.

The adopted regression model is represented in the below-given equation

   y = α + β1X1 + β2X2 + β3X3 + β4X4 + έ

y= performance of the educational institutes

α = Constant Term β1, β2, β3, β4 = Beta Coefficients

X1= Internal control system

X2= Risk management

X3= Foreign Campus

X4= Risk Appetite Tolerance

Interpretation of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

The table of the coefficients is representing the values for all variables is positives. Results of coefficient measures conclude that internal control of managerial staff has direct and strong relationship in positive direction towards the outcomes and performance records of higher education institutions. The significance value for internal control is 0.000. It means there is positive significant relationship among internal control and Performance of the selected institutes of research study (higher education institutions) as depicted in the study of (Fr. Ninik Yudianti, 2015). 

The H1 is accepted. The significance value for risk management is also 0.000, which is less than 0.05. This value shows that H2 is accepted as indicated in the study of (Fr. Ninik Yudianti, 2015). The Coefficients values of the Foreign Campus and Risk Appetite Tolerance show the positive relationship with Performance of the educational institutes selected for this research study (higher education institutions) as shown in the study of the (Ulrich Hommel, 2016). But the significant value for both of these variables is greater than 0.05.

The table of the model summary represents the effects of the internal control of managerial staff (independent variable) on the performance outcomes of the higher educational institute (dependent variable). As in the above-given table the value of the Adjusted R Square is 0.979 which shows due to the 1% change in independent variable, the Performance of the higher education institutions will be changed with the percentage of 97%. It represents a direct relationship with each. It means due to the effective internal control system, risk management, and Risk Appetite Tolerance. The educational institutes can perform in better way, with the improved risk management.

4.5 Correlation of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

The table presented below shows the results of the correlation test, and it also projects a functional relationship between the response and predictors.

Interpretation of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

The results of correlation statistical analysis project existence of a directional relationship between selected research variables.  Although, positive relationship is found in the results of Pearson correlation applied on variables such as internal control, Risk management, Foreign Campus, Risk Appetite Tolerance and Performance of the higher education institutions.  It means the engineering and business schools of the United Kingdom can enhance their performance by managing risk effectively. The campus of the organization will be launched internationally than it can be beneficial for the performance of the business and engineering schools of the United Kingdom.  

5. Conclusion of The impacts of Risk management as a tool of internal control on higher education institutions performance, A case from UK business and Engineering schools.

The current study is aimed at investigating the impact of risk management, as a tool of internal control, on higher education institutions performance in the UK specifically business and engineering schools. The data in this research were collected through a well-defined questionnaire. The Descriptive and correlation research method, along with questionnaire survey was conducted. For any organization, risk management is the most crucial managerial responsibility. So as is the risk management event for the High schools. It basically aims at providing the organization with the opportunity to identify the possible events that may affect the future of an organization.

The higher management and the executive authorities need to take into consideration these parameters at first priority. For the success of any organization, effective risk management is desirable. This criterion basically serves as the basis for the higher authorities to formulate the effective strategic decisions regarding the risk identification as well as the mitigation for the organizational work flow. The National Association of College and University Business Officers (NACUBO) highlighted the importance of risk management in higher education in 2003. The contents of that report are primarily focused on improving the risk management processes in high schools. It has become obligatory for universities to evaluate and assess their risk management system and use audits to analyse the efficacy of their control.

The existing study contributes significantly to the literature by representing the extent of the risk management system and its implementation in business and engineering schools. The practical implications of this study include implementation of management concepts from theory to increase the effectiveness of risk management as a tool for internal control in higher education institutes.

The results show that there exists positive significant relationship among internal control and Performance of the selected institutes of research study (higher education institutions). Also, the Coefficients values of the Foreign Campus and Risk Appetite Tolerance show the positive relationship with Performance of the educational institutes selected for this research study (higher education institutions). The outcomes from the model summary represents the effects of the internal control of managerial staff (independent variable) on the performance outcomes of the higher educational institute (dependent variable).

The correlational analysis for the study variables shows the directional relationship between selected research variables. The existence of positive relationship is confirmed in the results of Pearson correlation (which is applied on variables) such as internal control, Risk management, Foreign Campus, Risk Appetite Tolerance and Performance of the higher education institutions. It is thus concluded that the engineering and business schools of the United Kingdom can enhance their performance by managing risk effectively as well as the campus of the organization will be launched internationally than it can be beneficial for the performance of the business and engineering schools of the United Kingdom. The more efficiently the risks associated with the business processes are identified as well as mitigated the more it will be easy for the business schools to excel in their respective field. Also, it tends to provide the business schools with the efficiency in the formulation of the organizational strategies.

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This survey is aimed at analyzing whether the objectives of this research have fulfilled the objectives of the impacts of Risk management as a tool of internal control on higher education institutions' performance: A case from UK business and Engineering schools. This questionnaire will take from almost less than 10 minutes to complete it. That’s for sure that all information will be kept secret and anonymous to everyone. Your help is required to fill that questionnaire, so we are able to complete this research, and your efforts are highly appreciable.

Name (optional)

1) Age

a) 18-24                        b) 25-34 years               c) 35-44 years               d) 45- 54      e) 55 years plus

2) Gender

a) Male             b) Female

4) Educational Level 

a) Bachelor           b) Masters     c) PHD        d) Others

5) Employment status

a) Directors           b) Head of departments   c)  Senior professor

Please indicate how strongly you agree or disagree with each statement using the scale provided.

Strongly Disagree 1

Disagree 2

Neutral 3

Agree 4

Strongly Agree 5

 

S.n	Statements	SD 1	D 2	N 3	A 4	SA 5
	Internal control
5.	For the particular performance of the organization, Internal control has contributed in good ways.
6.	During the audit process Internal control system reviews all the performance appraisals of the institutes.
7.	In financial statements Internal control system offers qualified opinions related to the better performance of the institutes.
	Risk management
10	There must be clear management statements for risk management in any institutes.
11.	Within the organization the Internal audit defines areas of risk for managing the risk in good way.
12.	In all departments there must be proper risk supervision.
13	In the organization Supervisors is accountable to control whatever goes on daily.
	Foreign Campus
18	The campus of the university at international states pretends its good performance.
19	Foreign Campus is the good source to enhance the performance of the university.
20	Due to the increase in the campuses of the organization the risk level is also increase.
	Risk Appetite Tolerance
18	The Risk Appetite Tolerance is an essential key to enhance the performance of the organization.
19	Sometime the Risk Appetite Tolerance becomes the cause of deficiency of the performance of the organization.
20	The school’s appetite and tolerance for risk are understood and are a part of the institution’s decision-making culture.
21	If the Risk Appetite Tolerance will be ignored or minimize than it is impossible to maintain the decision-making culture of institutes.
	Performance of the higher education institutions
18	By maintain the strategy of the Risk Appetite Tolerance the performance of the institutes can enhance.
19	Foreign Campuses are the good source to increase the performance of the institutes.
20	By managing risk in effective’s manners the performance of the business and engineering schools can be increase.
21	Internal control system is an essential tools measuring the performance of the institutes.

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