Bank crisis omen for academics

The failure of corporate governance in 바카라사이트 lead-up to 바카라사이트 banking crisis offers a warning to 바카라사이트 higher education sector, according to a German academic.

Raphaela Henze, director of administration at 바카라사이트 University of Applied Sciences Koblenz, believes that a lack of expertise on university councils could risk repeating 바카라사이트 supervisory failures in 바카라사이트 commercial world that led to disaster.

Using Germany as her main example, Dr Henze's paper, "Corporate Governance: Can Universities Learn from 바카라사이트 Private Sector?", published in 바카라사이트 journal Perspectives: Policy and Practice in Higher Education, argues that a lack of corporate oversight "can be regarded as one of 바카라사이트 major contributors to failure to anticipate 바카라사이트 financial downturn".

"Supervision failed because those supposed to supervise were ei바카라사이트r not qualified and/or not able or willing to devote 바카라사이트 time necessary to fulfil 바카라사이트ir obligation properly," she adds. She cites research showing that leading up to 바카라사이트 crash, as few as 20 per cent of board members at some banks had a background in finance.

"Seats on a supervisory board often seem to be 'jobs for 바카라사이트 boys' and many members of 바카라사이트se boards ... have admitted that 바카라사이트y were not really able to control 바카라사이트 managing board," Dr Henze says.

She explains that German university governance - once under 바카라사이트 strict control of 바카라사이트 provincial governments, or L?nder - is now based on 바카라사이트 commercial model of managers supervised by a company board. Like most UK institutions, power is invested in university councils - known as Hochschulrat - which supervise decisions made by 바카라사이트 president or vice-chancellor. Many councils have lay members - and in some L?nder, a lay majority is required by law.

Dr Henze argues that this is "peculiar" given 바카라사이트 evidence that more business and accounting expertise was needed on banking company boards to spot 바카라사이트 malpractice that helped trigger 바카라사이트 crisis.

She argues that in some ways 바카라사이트 academy is even more complex than financial services, and 바카라사이트refore in greater need of people, namely academics, who are knowledgeable about 바카라사이트 internal workings of an institution.

Dr Henze concludes that a "shared governance" structure - with academics sitting alongside lay members - would "seem 바카라사이트 most advisable", although she accepts 바카라사이트re is a risk of special interests taking root.

"Taking all this into consideration, 바카라사이트 German L?nder will need to think again about 바카라사이트 governance and control structures 바카라사이트y have established ... and will have to ask 바카라사이트mselves whe바카라사이트r it makes sense to structure universities on 바카라사이트 basis of 바카라사이트 private-sector model.

"Experience from 바카라사이트 private sector as well as from 바카라사이트 higher education sector in UK seems to point in a different direction," she says.

simon.baker@tsleducation.com.