Work-integrated learning (WIL) is a risky business for universities. WIL is a strategic risk worthy of pursuing by universities in the prevailing higher education environment, which is characterized by competition, changes in funding arrangements and stakeholder demand for WIL. Nevertheless the strategic opportunities that WIL presents cannot be achieved without the university taking on unavoidable and distinct legal risks that may have serious financial and reputational consequences for the university. This article examines WIL through a lens of enterprise risk management. The author describes how WIL is a strategic risk for universities, and identifies the possible legal risks of WIL through a review of empirical studies and case law in Australia. It is argued that risk management involves a balance between the university goals of maximizing the strategic value and minimizing the legal risks in relation to WIL.