Examining the effectiveness and implementation challenges of internal control systems for strategic risk management in private higher education institutions

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Type of the article: Research Article AbstractPrivate higher education institutions (HEIs) in the Philippines face persistent governance and accountability challenges due to weak internal control systems. These weaknesses contribute to financial inefficiencies, compliance risks, and a decline in institutional trust. Addressing this issue is crucial as HEIs adapt to evolving regulatory requirements and sustainability demands. This study aims to examine the effectiveness, implementation challenges, and strategic risk management practices associated with internal control systems among eight private HEIs in Nueva Ecija, the Philippines, during the 2024–2025 academic year. A descriptive-quantitative approach was employed, utilizing a validated survey instrument administered to 69 finance-related personnel, including cashiers, budget officers, and accountants, yielding a high reliability score (Cronbach’s α = 0.917). The findings reveal that internal control systems are generally effective (mean score = 4.12, SD = 0.56), yet constrained by weaknesses in risk mitigation, monitoring, and personnel engagement. Significant correlations (p < 0.05) were observed between control effectiveness, implementation challenges, and risk management practices, indicating that organizational culture and institutional capacity strongly influence system performance. The study concludes that strengthening audit communication, monitoring mechanisms, and staff competence through technology-supported risk management initiatives can enhance institutional governance, accountability, and long-term sustainability in private higher education institutions. AcknowledgmentThe authors used an AI-based assistant (ScholarGPT, built on the GPT-5 framework and Gemini) to support the organization and refinement of the literature review section. The tool was employed strictly for improving structure, clarity, and coherence. All conceptual analyses, interpretations, and conclusions were developed and verified by the authors to ensure accuracy and compliance with Problems and Perspectives in Management editorial and ethical standards.

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