BACKGROUND

Risk within transportation agencies encompasses uncertainties that present opportunities and threats to an agency's mission. Effective risk management relies on quantifying the impacts of these uncertainties. However, current performance measures, like asset condition and safety, might not fully capture the potential for value creation and risk reduction achievable through effective management of these uncertainties.

Several research projects on risk management have been conducted by the American Association of State Highway and Transportation Officials (AASHTO), the Federal Highway Administration (FHWA), and the NCHRP. However, this body of knowledge primarily concentrates on enterprise risk management itself rather than on quantifying the benefits of risk management.

Research is needed to bridge the gap and develop a framework for program-level risk management performance metrics (e.g., federally funded programs, grant programs, or state or locally funded transportation programs), thereby better quantifying the efficacy of risk management practices. Additionally, the needed research must enhance the data-driven decision-making process and integrate risk management into the daily operations of multimodal transportation agencies.

OBJECTIVE

The objective of this research is to develop a guide to create program-level risk management performance metrics tailored for state departments of transportation (DOTs), accompanied by example performance measures, case studies, and toolkits to drive data-driven decision-making throughout multimodal transportation systems.

STATUS: Work has been initiated. The first interim report is expected in April 2025.