The Other Risks at Penn State

With the abuse scandal brewing at Penn State, other risks will surface that could negatively affect the college. First reputational risk will develop. The institution has had a blemish free run and now the reputation could be tarnished. This will dove tail into financial risk as donations to the school and or enrollment may drop. This could affect the bond rating of the college as the money dries up, which then moves the risk right into the board room. The D&O lawsuits could be overwhelming. I am not saying this is what is going to happen but it gives one a perspective on how risk is related. Until next time be careful out there and know your risks. K

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