Identifying and Managing Financial Risks in a Transportation Asset Management Plan (TAMP)
Transportation agencies strive to provide a safe and functional transportation system that delivers the highest possible level of service and enables the efficient movement of people and goods. Unexpected or unplanned events can impact a State DOT’s ability to provide the desired level of service. Managing uncertainties through risk management is an integral part of modern leadership practices and a key component to transportation asset management (TAM). Risk management is also one of the minimum requirements to include in a Transportation Asset Management Plan (TAMP) under 23 U.S.C.119(e).
This report builds on information gathered from developing State Departments of Transportation case studies on identifying and managing financial risks. The report summarizes the common financial risks considered in State DOT TAMPs and how these factors influence the development of TAMP investment strategies. Approaches to managing these risks are provided with examples showing how State DOTs have put these strategies into practice. Keys to success are provided.
Infrastructure Assets: Highway Assets
Resource Types: Case Study/Practice Example
Management Processes: Performance Based Planning & Programming, Performance Reporting & Communication, Resource Allocation, Risk Management, Strategic Direction