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Managing key budget risks

The university maintains a proactive approach to risk mitigation and focuses on long-term strategic planning and decision-making to sustain financial responsibility. Overall, this budget presents low to moderate risk based on the likelihood and potential consequences of major factors. Our main budget risks and corresponding mitigation strategies include:

  • Maintaining academic quality and student success in an AI driven age: Investments in student well-being and academic support continue to grow, but as our student body diversifies, demands often outpace resources. We will invest in high-impact initiatives while acknowledging the individuality of our community members. This year, we continue our pilot work on AI technology to support students in the classroom, but this is only the starting point. A commitment to using AI as an effective tool in teaching, research and administrative activities is a must and it must happen quickly. This will require us to support all members of the university community to become AI literate while at the same time demanding it be used ethically.
  • Achieving enrolment targets: The university typically meets its enrolment projections within ±2%. However, government caps on international students introduce a degree of uncertainty. We have lowered our revenue forecasts tied to international enrolment and will rely on any surplus if needed.
  • Financial indicators: In 2023 the Ministry implemented a Financial Framework, defining metrics and thresholds in liquidity, sustainability, performance, and credit rating. We currently carry a medium-risk rating, mainly due to high-debt obligations. Next year will be our third consecutive year in medium risk category and an automatic move to high-risk which will trigger further government oversight.
  • Proper space and equipment to accommodate growth: To achieve strategic academic objectives, Ontario Tech is facing increased pressures to provide dynamic on-campus space. The University needs to balance reductions in public funding and concerns about overall affordability with the need for high-quality facilities. For this reason, we must be laser focused on what the most efficient and effective use of our limited resources might be in today’s technology driven environment.