7 Tips for Incorporating Risk into an Asset Management Plan

Did you know that the Federal Highway Administration now requires State DOTs to develop a risk-based asset management plan?

If you need to successfully integrate risk into your asset management plans, you need to follow several key principles:

Tip #1: Gain Top-Down Support

In order to succeed with your risk-based asset management plan, you need executive support. The executives in your organizations hold key decision-making power, so getting them on-board with your risk management planning is key.

Educate your senior leadership on the importance of risk-based asset management, as well as the processes behind identifying and mitigating potential risks for your organization.

Tip #2: Understand Ways to Reduce Risk

Many see risk management as an uncertainty, but we should view it as an opportunity. Although risks may seem unavoidable, your organization will be able to find ways to reduce certain risks.

Funding is a key issue for organizations beginning to invest in risk management. An example way to save resources is to accept the risk of lower conditions during the early stages of your transportation asset management plan (TAMP) in order to invest more in asset preservation.

Tip #3: Analyze Long-Term Consequences

Different investments in asset management plans lead to different results. While creating your risk-based asset management plan, make sure to evaluate the possible long-term consequences of your actions. Illustrating possible consequences helps improve your organization’s long-term forecasting and accuracy.

Tip #4: Anticipate External Risks

While it near impossible to predict all disasters, there are ways to anticipate certain risks for your organization.

  • Does your area ever experience natural disasters? If so, during what time of year?
  • Is there currently an emergency plan in place for threats or lock-down situations?

Consider all possible emergencies or risks your organization could face, and develop plans to handle them quickly and effectively. To read more about developing an emergency plan for your organization, click here.

Tip #5: Integrate Risk Management into Asset Management Processes

Effective enterprise asset management software helps you prioritize asset investments based on different risk factors. It also provides an integrated platform for performance reports, including weekly or monthly risk management reports.

Tip #6: Communicate Risks to Stakeholders

You must update your key stakeholders on your risk management processes. Stakeholders may include the governor, legislature, the media and others. By sharing your risk management plans, your stakeholders and community understand that your organization is doing everything it can to mitigate risks.

Tip #7: Strive for Continual Success

You should review your risk-based asset management plan periodically. As you become more comfortable with risk management, you will find more areas for improvement. In order to continuously succeed, you should push for additional staff training sessions and flesh out documentation of your processes and results.

This risk management rule affects more than just State DOTs. The rule also applies to all roads and bridges on the National Highway System, many of which are managed and maintained by counties, and cities that are a part of a Metropolitan Planning Organization (MPO).

Does your organization need to develop a risk-based asset management plan? AssetWorks EAM can help.

I need a risk-based management plan!
2022-09-07T14:05:49-04:00

Share This Story, Choose Your Platform!