Question

conduct the Risk Analysis of Australian higher education industry in terms of Operational, Financial, Political, Regulatory and compliance risk and reputational risk.

Answer 1

Risk related to Australian higher education industry in terms of-

A. Operational risk- operational risk related to Australian higher education industry is related to closure of organisations due to systematic risk like coronavirus which can never be control and there is a risk related to loss and continuanvu of the fixed cost in form of salaries which can hamper the over of cash flows of the industry.

B. Financial risk- risk related to change in the structure of monetary policy by the Reserve Bank of Australia which is leading to change in the disposable income pattern of Australian resident which are having a adverse impact upon the cash flows of the industry and we can also associate various kinds of macroeconomic was along with microrisk which are leading to change in the overall financial status of the Australian educational industry.

C. Regulatory risk will be related to risk in terms of compliance of educational rules and other welfare rules which is to be focused at maintaining of competitive face and protecting the interest of students

D. Compliance risk is related to risk in in adherence to environmental and social policies along with legal policies and welfare of the students and welfare of the society which will be leading to additional cost and additional risk and these are even considering higher penalties so that can have an adverse impact on the Australian higher education industry.

E. reputational risk is related to risk in terms of maintenance of the reputation of the organisation and reputation of the industry so that it would attract a large number of students and foreign students also which will be leading to risk related to additional cost in maintenance of the reputation.