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While there have been several closings because of risk management issues, it goes far beyond that. Take any fraternity's list of active chapters today and compare it to two years ago and the numbers is less. Many of those closings have been due to low membership or inability to operate at standards set by the national organization.
Keep in mind, this was during a strong economy. It usually takes a year or two after the economy tanks before it results in chapter closings. University of Michigan greek officials, among others, have voiced a concern about what the recession will do to next fall's numbers. The schools themselves are worried about next fall's enrollment figures. An admissions officer that I know is concerned that there may be a huge gap between acceptances for fall '09 and actual admissions, as families determine that they cannot afford the cost. This has been an issue that has increased in each of the last two years.
Fraternities need to get ther acts together in more than risk management. Few are nearly as well managed financially as are the sororities. During the 1930s depression, more fraternities closed because of financial insolvency than for lack of members!
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