Charter

Introduction

MIT seeks to push beyond existing boundaries and to seize opportunities in support of its mission. The Institute supports a system of risk identification and assessment to increase awareness and understanding of the risks taken on in this pursuit, and manage them effectively. Through execution of responsibilities described below, the MIT Risk Council is an important part of the system in which the Institute takes informed risks.

Formation

The MIT Risk Council was formed in 2012 with a membership of individuals in operational and advisory roles representing multiple areas of central and academic operations, to address risk. Members bring a deep understanding of MIT’s risk-taking culture, and of the delicate task of eliminating or mitigating risks that may degrade the Institute’s ability to achieve its mission. They are part of a broader community of individuals who bear responsibility for, and may actively manage, risks of all types. The Risk Council is chaired by MIT’s Institute Risk Officer, who reports to the Vice President and General Counsel. Members are invited by the Chair and broad representation is welcome. The Risk Council is accountable to the central senior administration team in the President’s Office.

Mission

The Risk Council works in partnership with Risk Management & Compliance Services who advises senior administration risk owners on matters related to Financial, Operational, Safety, Behavior, Compliance, Reputation, and Strategic Risks. The Risk Council supports the Institute’s system of risk identification and assessment, and helps maintain awareness of top risks. As part of a network, Risk Council members share risk concerns and possible solutions, advise Risk Management & Compliance Services, and communicate within individual operating units and to their senior supervisors on matters of risk.

Key Responsibilities

Risk Council does not supplant existing risk management activities, or assume ownership of risks beyond each member’s organizational responsibilities. Accordingly the Risk Council contributes to the integrity of the framework for understanding and taking risks at MIT through the following activities:

  • Advise and partner with Risk Management & Compliance Services;
  • Be a sounding board for, and bring, questions regarding risk ownership, risk assessment, and risk management strategies;
  • Bring knowledge and information about risk to own units and areas, to increase risk awareness;
  • Through participation, learn about matters of Institute risk, risk management principles and practices, and senior administration perspectives on risk at MIT;
  • Contribute ideas for discussion, review or exploration by Risk Council.