ERIC Number: ED262187
Record Type: RIE
Publication Date: 1985-Nov-6
Reference Count: 0
Course Budgeting: Balancing Rewards and Risks.
Matkin, Gary W.
Continuing education programmers must be risk takers; however, they should not be gamblers. The most successful of them are able to estimate a balance between potential rewards and risks, taking chances when the odds are favorable. Although it is essential that course planners balance potential financial rewards and risks, it is important to bear in mind that other nonfinancial rewards, particularly those related to reputation-related concerns, must not be forgotten. Once the programmer is ready to balance the financial rewards and risks of offering a particular course, the following factors should be considered: cost and value of programmer time, opportunity costs, sunk costs, enrollment probabilities, and up-side versus down-side potential. Each of these factors can be considered together with the others to arrive at a reward/risk index for the contemplated course, which will allow a planner to compare the course with other potential offerings. Finally, the potential risks of comtemplated courses can be shared in several ways: through shifts between fixed and variable costs, through joint decision-making efforts that allow risk to be shared between programmers and their superiors, and through a "portfolio management" approach that spreads risks among several courses rather than accounting on an individual-course basis. (MN)
Publication Type: Guides - Non-Classroom; Speeches/Meeting Papers
Education Level: N/A
Authoring Institution: N/A
Note: Paper presented at the National Adult Education Conference (Milwaukee, WI, November 6-10, 1985).