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Implementation of the AASHTO Guide for Enterprise Risk Management (2022)

Chapter: Appendix D - Managing Risks in Uncertain Times Proceedings of the Webinar

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Suggested Citation:"Appendix D - Managing Risks in Uncertain Times Proceedings of the Webinar." National Academies of Sciences, Engineering, and Medicine. 2022. Implementation of the AASHTO Guide for Enterprise Risk Management. Washington, DC: The National Academies Press. doi: 10.17226/26516.
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Suggested Citation:"Appendix D - Managing Risks in Uncertain Times Proceedings of the Webinar." National Academies of Sciences, Engineering, and Medicine. 2022. Implementation of the AASHTO Guide for Enterprise Risk Management. Washington, DC: The National Academies Press. doi: 10.17226/26516.
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Suggested Citation:"Appendix D - Managing Risks in Uncertain Times Proceedings of the Webinar." National Academies of Sciences, Engineering, and Medicine. 2022. Implementation of the AASHTO Guide for Enterprise Risk Management. Washington, DC: The National Academies Press. doi: 10.17226/26516.
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Suggested Citation:"Appendix D - Managing Risks in Uncertain Times Proceedings of the Webinar." National Academies of Sciences, Engineering, and Medicine. 2022. Implementation of the AASHTO Guide for Enterprise Risk Management. Washington, DC: The National Academies Press. doi: 10.17226/26516.
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Suggested Citation:"Appendix D - Managing Risks in Uncertain Times Proceedings of the Webinar." National Academies of Sciences, Engineering, and Medicine. 2022. Implementation of the AASHTO Guide for Enterprise Risk Management. Washington, DC: The National Academies Press. doi: 10.17226/26516.
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Suggested Citation:"Appendix D - Managing Risks in Uncertain Times Proceedings of the Webinar." National Academies of Sciences, Engineering, and Medicine. 2022. Implementation of the AASHTO Guide for Enterprise Risk Management. Washington, DC: The National Academies Press. doi: 10.17226/26516.
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Suggested Citation:"Appendix D - Managing Risks in Uncertain Times Proceedings of the Webinar." National Academies of Sciences, Engineering, and Medicine. 2022. Implementation of the AASHTO Guide for Enterprise Risk Management. Washington, DC: The National Academies Press. doi: 10.17226/26516.
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Suggested Citation:"Appendix D - Managing Risks in Uncertain Times Proceedings of the Webinar." National Academies of Sciences, Engineering, and Medicine. 2022. Implementation of the AASHTO Guide for Enterprise Risk Management. Washington, DC: The National Academies Press. doi: 10.17226/26516.
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Suggested Citation:"Appendix D - Managing Risks in Uncertain Times Proceedings of the Webinar." National Academies of Sciences, Engineering, and Medicine. 2022. Implementation of the AASHTO Guide for Enterprise Risk Management. Washington, DC: The National Academies Press. doi: 10.17226/26516.
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Suggested Citation:"Appendix D - Managing Risks in Uncertain Times Proceedings of the Webinar." National Academies of Sciences, Engineering, and Medicine. 2022. Implementation of the AASHTO Guide for Enterprise Risk Management. Washington, DC: The National Academies Press. doi: 10.17226/26516.
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Suggested Citation:"Appendix D - Managing Risks in Uncertain Times Proceedings of the Webinar." National Academies of Sciences, Engineering, and Medicine. 2022. Implementation of the AASHTO Guide for Enterprise Risk Management. Washington, DC: The National Academies Press. doi: 10.17226/26516.
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Suggested Citation:"Appendix D - Managing Risks in Uncertain Times Proceedings of the Webinar." National Academies of Sciences, Engineering, and Medicine. 2022. Implementation of the AASHTO Guide for Enterprise Risk Management. Washington, DC: The National Academies Press. doi: 10.17226/26516.
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Suggested Citation:"Appendix D - Managing Risks in Uncertain Times Proceedings of the Webinar." National Academies of Sciences, Engineering, and Medicine. 2022. Implementation of the AASHTO Guide for Enterprise Risk Management. Washington, DC: The National Academies Press. doi: 10.17226/26516.
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Suggested Citation:"Appendix D - Managing Risks in Uncertain Times Proceedings of the Webinar." National Academies of Sciences, Engineering, and Medicine. 2022. Implementation of the AASHTO Guide for Enterprise Risk Management. Washington, DC: The National Academies Press. doi: 10.17226/26516.
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Suggested Citation:"Appendix D - Managing Risks in Uncertain Times Proceedings of the Webinar." National Academies of Sciences, Engineering, and Medicine. 2022. Implementation of the AASHTO Guide for Enterprise Risk Management. Washington, DC: The National Academies Press. doi: 10.17226/26516.
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Suggested Citation:"Appendix D - Managing Risks in Uncertain Times Proceedings of the Webinar." National Academies of Sciences, Engineering, and Medicine. 2022. Implementation of the AASHTO Guide for Enterprise Risk Management. Washington, DC: The National Academies Press. doi: 10.17226/26516.
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Suggested Citation:"Appendix D - Managing Risks in Uncertain Times Proceedings of the Webinar." National Academies of Sciences, Engineering, and Medicine. 2022. Implementation of the AASHTO Guide for Enterprise Risk Management. Washington, DC: The National Academies Press. doi: 10.17226/26516.
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Suggested Citation:"Appendix D - Managing Risks in Uncertain Times Proceedings of the Webinar." National Academies of Sciences, Engineering, and Medicine. 2022. Implementation of the AASHTO Guide for Enterprise Risk Management. Washington, DC: The National Academies Press. doi: 10.17226/26516.
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Suggested Citation:"Appendix D - Managing Risks in Uncertain Times Proceedings of the Webinar." National Academies of Sciences, Engineering, and Medicine. 2022. Implementation of the AASHTO Guide for Enterprise Risk Management. Washington, DC: The National Academies Press. doi: 10.17226/26516.
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Suggested Citation:"Appendix D - Managing Risks in Uncertain Times Proceedings of the Webinar." National Academies of Sciences, Engineering, and Medicine. 2022. Implementation of the AASHTO Guide for Enterprise Risk Management. Washington, DC: The National Academies Press. doi: 10.17226/26516.
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Suggested Citation:"Appendix D - Managing Risks in Uncertain Times Proceedings of the Webinar." National Academies of Sciences, Engineering, and Medicine. 2022. Implementation of the AASHTO Guide for Enterprise Risk Management. Washington, DC: The National Academies Press. doi: 10.17226/26516.
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378 Managing Risks in Uncertain Times – Proceedings of the Webinar Contents 379 Proceedings of Managing Risks in Uncertain Times 381 WSDOT: Managing Risks to Revenues, Employees, and Diversity 389 Managing Pandemic Risks to the Tennessee DOT 392 Managing Risks to Minnesota DOT’s Revenues and Workforce 396 Minnesota DOT Incorporating Employee Safety into Risk Management 397 Managing Risks to Employee Safety at UDOT 398 Update on the AASHTO Subcommittee on Risk Management 400 Next Steps for NCHRP Project 20-44(02) 402 Final Comments A P P E N D I X D

Managing Risks in Uncertain Times – Proceedings of the Webinar 379   Proceedings of Managing Risks in Uncertain Times Background e objectives of NCHRP Project 20-44(02), “Implementation of the AASHTO Guide for Enterprise Risk Management,” are to develop and execute a dissemination and implementation plan to create awareness of the Guide and facilitate successful implementation of enterprise risk management by state DOTs. e project includes many activities, including: • Providing consultant support to three state DOTs to help implement enterprise risk management, • Supporting a community of practice (COP) of state DOT practitioners so that they can have a forum to exchange information and best practices on risk management, • Conducting regional outreach meetings to expose new states to risk management, • Holding pilot-peer exchanges, • Holding peer exchanges with other DOTs in addition to pilot states, and • Developing a nal report that will include strategies for implementing risk management as well as including the many risk management tools developed by the three pilot states. e advent of COVID-19 and the related subsequent recession, the enormous wildres in the west, hurricanes in the southeast, and the national debate over racial justice in the aermath of the George Floyd death led the project panel to suggest holding a webinar on how state DOTs are using risk management to help navigate these crises. e webinar was held October 19, 2020, and was titled Managing Risks in Uncertain Times. Presentations were made by: • Tim Henkel, Assistant Commissioner from the Minnesota DOT and chair of the NCHRP 20-44(02) Project Panel; • John Milton, Director of Transportation Safety and Systems Analysis at the Washington State Department of Transportation; • Paul Degges, Chief Engineer of the Tennessee Department of Transportation; • Jean Wallace, the Minnesota DOT Assistant Modal Planning & Program Management Divi- sion Director, and chair of AASHTO’s Subcommittee on Risk Management; • Chris Berrens of MnDOT, Planning Director, Transportation Performance, Risk & Invest- ment Analysis; • Chris Mabey, Utah DOT Safety and Risk Program Manager; and • Shobna Varma, StarIsis Corporation, the principal investigator who facilitated the webinar. Fiy-nine people attended the 2-hour webinar. Summaries of the presentations follow. Introductory Remarks: Facing a Time of Extraordinary Risks Shobna Varma opened the meeting by welcoming everyone, addressing housekeeping items, and then describing the context of the webinar. e conuence of a pandemic, recession, natural disasters, and social debate creates risks that agencies must address. She noted that agencies are facing extraordinary challenges and risks such as a global pan- demic and a recession at the same time. e presenters will discuss how they are using risk management to manage risks to agency revenues, employee health, and agency productivity. Shobna provided the audience with an overview of the 20-44(02) project, including its objec- tive to promote the use of the AASHTO Guide for Enterprise Risk Management. She discussed project support for three pilot states to help them implement enterprise risk management (ERM).

380 Implementation of the AASHTO Guide for Enterprise Risk Management Among the many elements of the project were: • Direct support to the DOTs in Utah, Washington State, and Tennessee to implement risk management strategies to address risks to core objectives. • Creation of a COP. This is a group of 10 state DOTs whose representatives meet regularly to exchange good practices regarding risk management. • Peer exchanges and regional meetings to promote ERM among states that have not yet adopted it. • A final report, which will be produced in the first quarter of next year. It is expected to be a useful report that will include: – Strategies on how to implement ERM in agencies. – Tools that the pilot states have developed, such as: ◾ A process to assess environmental risks to assets and corridors, ◾ A toolkit for hiring managers to reduce the risk of hiring the wrong person or losing the right person, ◾ A risk tool to identify risks that could delay or increase costs to projects, ◾ A checklist to ensure that all project elements are complete before bid to reduce the risk of letting delays and change orders, and ◾ A list of strategies to try to reduce the risk that the workforce will not be diverse and inclusive. • The strategies developed by the 20-44(02) project address risks that affect the core business practices of DOTs. She said state DOTs will find the strategies and tools developed during the project to be quite useful. Shobna noted that the project began before creation of the AASHTO Subcommittee on Risk Management (SRM). As the COP met and as the project conducted its many meetings, the AASHTO SRM was kept involved. Members of the SRM were invited to the COP meetings, and Shobna kept Jean Wallace engaged throughout the project. It is unprecedented for agencies to be dealing with a pandemic and a recession at the same time. We are experiencing a time of extraordinary challenges and extraordinary risks. Today’s speakers will discuss how they are using risk management to: • Manage risks to agency revenues, • Manage risks to the safety and health of their employees, and • Manage risks to agency productivity during the pandemic and capitalize on technology to maintain workforce productivity. Shobna said that we have an excellent panel who we thank for participating in this webinar and sharing their agency’s experiences. Providing an overview of the agenda, Shobna said: • In a moment you will hear from Tim Henkel, the assistant commissioner from the Minnesota DOT, who is also the chair of the NCHRP 20-44(02) Project Panel. • You also will hear from John Milton, Director of Transportation Safety and Systems Analysis at the Washington State Department of Transportation. WSDOT has gone through major budget cuts, and John will discuss how he and his staff used risk management to help WSDOT assess the risks from each proposed budget cut. They used a risk-register-like tool to boil down 350 pages of proposed budget cuts. This presented the implications of the cuts in a man- ageable and understandable summary of the risk posed by each suggested budget cut. John also will discuss some other risk-mitigation efforts in WSDOT, including the steps WSDOT has taken to protect the health and safety of its workforce. • Next you will hear from Paul Degges, chief engineer of TDOT. Paul Degges will discuss how TDOT is managing risks to the health, safety, and productivity of its workforce during the pandemic, and how they are mitigating risks resulting from several vacancies.

Managing Risks in Uncertain Times – Proceedings of the Webinar 381   • Paul will be followed by Jean Wallace. Jean is the MnDOT Assistant Modal Planning & Program Management Division Director, and she is also the chair of the AASHTO’s Subcommittee on Risk Management. • Jean will be followed by Chris Berrens of MnDOT, the Planning Director Transportation, Performance, Risk & Investment Analysis in the Oce of Transportation System Manage- ment. Jean will speak about how Minnesota is using risk management to help prioritize its budget decisions. • Presenting from the Utah DOT will be Chris Mabey, who is the UDOT Safety and Risk Pro- gram Manager. Chris will discuss how UDOT integrated into its employee health and safety eorts additional strategies to mitigate the threats posed by COVID-19. • Jean Wallace will give us an update on activities by the AASHTO SRM. Jean will discuss how the eorts of the COP will be taken over by the AASHTO SRM when this project winds down. e COP was created before the AASHTO reorganization that created the SRM. We have kept the risk subcommittee informed of our eorts and members of this project’s COP are also on the risk subcommittee. is overlap should help with continuity of eorts. We hope the subcommittee members nd the tools and products from NCHRP Project 20-44(02) to be helpful to their eorts. e presenters will be sharing how their agencies are using risk management to mitigate these high-priority risks, navigate through these challenging times, and make important decisions. We have got a great panel of presenter, and we know you will nd their presentations on how they have used risk management to address uncertainties, inform decisions, and mitigate risks useful. Comments from Panel Chair Tim Henkel Aer thanking everyone for participating, Tim noted that he and John participated 10 years ago in an FHWA international scan on enterprise risk management. e implementation eorts that followed that scan led to development of the AASHTO Guide, the NCHRP Project 20-44(02), and several other risk-promotion eorts. Despite all the promotion of risk management, Tim said he never envisioned the nation facing the combination of risks that it faces today. ese risks and the eorts to promote ERM that have occurred to date provide the context for the webinar. He said that, more so than ever, the nation is facing a period when mitigating risks is important. Agencies are dealing with the pandemic, the recession, losses in revenue, and threats to employee health and safety. e pandemic has created challenges for those who need to work from home and even more risks for those, such as mainte- nance and construction sta, who must still go to various DOT oce and garage locations to work. At the same time as managing these risks, DOTs must ensure the safety of the traveling public. Tim presented Figure 1, which on the le illustrates the surging third wave of COVID-19 cases and on the right, the nation’s gross domestic product, which experienced a dramatic decrease. State DOTs are caught between these two trends, which are presenting risks to their revenues, their employees, and their productivity. Tim thanked the presenters and said that their examples will provide valuable information on how state DOTs are managing these extraordinary risks. WSDOT: Managing Risks to Revenues, Employees, and Diversity John Milton said that risk management has become even more important to the day-to- day decision making at WSDOT than it was before the current national challenges. John said WSDOT was dealing not only with the COVID-19 pandemic but also with a voter initiative known as I-976, which severely cut WSDOT’s funding, particularly for non-highway modes

Figure 1. While COVID-19 cases have risen, the nation’s gross domestic product has fallen.

Managing Risks in Uncertain Times – Proceedings of the Webinar 383   such as transit, Amtrak, and the state DOT’s ferry services. e initiative was recently over- turned by the Washington State Supreme Court, but nonetheless WSDOT is still facing budget reductions. And until the court ruled, WSDOT was facing dramatic reductions in revenues. John said he oen uses the graphic in Figure 2 to illustrate how enterprise risk management is an essential and complementary process to WSDOT’s strategic management approach. He nds it important for risk management sta to understand the strategic goals and objectives of an agency and to recognize that achieving the strategic goals is a critical piece of risk manage- ment. en when any situation surrounding performance or asset management changes, the risks to those eorts must be considered for how they aect the strategic goals. COVID-19 is changing how WSDOT can pay for projects and which projects it can aord, which directly aects performance and asset management. ere is incredible diculty in maintaining quality management when an agency is going through uncertainty such as that created by COVID-19. Risk management is an integral part of the WSDOT strategic management process and is par- ticularly important in uncertain times such as with COVID-19. Ultimately, all the processes must be aligned to achieve the strategic objectives. WSDOT has made risk management integral to what it does. Risk management is authorized by executive order, and WSDOT is on its sixth version of the executive order, indicating the longevity and importance of the eort. John said WSDOT uses risk management not just as a process but as tool to enhance decision making. In times of chaos, risk management can play an important part in prioritizing risks, understanding those things that agencies need to do, and getting down to the “nitty gritty” of making dicult decisions. ere are leadership changes expected that pose many risks, and the DOT is proactively working to manage the risks from such changes. John noted that COVID-19 is a “game changer” because it is not just going to aect us now but will continue to do so for a long time. It has had a lot to impact on our budget scenarios. Also, there are people in the department that cannot get to work. Some cannot come to work because they have dierent risks that they are dealing with every single day. So, COVID has not just aected our budgets, it will aect the projects and services that WSDOT can oer, and those impacts will inuence the highway system and transportation services for years. COVID-19 aects who can come to work and how they can conduct their work. Figure 2. Risk management is integrated as an essential element of the WSDOT strategic management process.

384 Implementation of the AASHTO Guide for Enterprise Risk Management Another long-term impact of COVID-19 is to WSDOT’s effort to promote diversity and cultural inclusion. If new staff cannot be hired and training cannot be conducted, it is difficult to advance the strategic goal of developing a more diverse and inclusive work force. In an effort related to diversity and inclusion, WSDOT is conducting research on the disproportionate impacts to minority communities involving pedestrian fatalities and highway crashes. Some freeways were built in minority neighborhoods in the 1950s and 1960s and eliminated local streets that had sidewalks. Now, minority pedestrians may experience more traffic safety threats because of a lack of sidewalks. WSDOT is sponsoring research on this issue. Key extracts from John Milton’s statements include: “COVID-19 is also affecting our initiative on cultural inclusion and diversion. This is one of the core principles in the state and for the DOT. Inclusion is a key component of our strategic objectives and is being incorporated into everything that we do. So, thinking about a time like now when we are reducing budgets, and looking at the issues we had beforehand and the issues we see now in the society and addressing our objectives of inclusion and diversion, it becomes increasingly difficult. For example, there are processes in safety that relate to the issue of equity that people may not see. We are currently looking at doing research, including with NCHRP, for additional information on this topic.” “When we look at safety from the perspective of our old transportation system, we can see that they were not developed in a lot of locations that were in lower-income areas. Projects were developed with gaps in the system to minimize project costs but resulted in not addressing the need for transportation systems in the locations that were most needed because these were the locations where people were walking on a normal basis.” “We are now looking at research now to change our safety programs to make it a more equitable system.” “The issues with I-976 would have resulted in dire consequences. I-976 was the first hit for us before COVID-19. It took out our transportation revenues in specific transportation areas. Specifically, it hit transit, and this is directly is linked to having inequitable impacts. It would have taken out several of our projects, with an over $500 million revenue drop in year 1 and over another $1.7 billion in year 2. Ultimately, it would have been over $4.5 billion over a 10-year period. It did affect our I-976 areas within transit and rail. Not only did it face the prospect of losing money, it may have faced the need to repay money it already received. WSDOT got into this process very early and discussed this at the DOT’s biweekly meeting, which is the governance group of the DOT. The risk manage- ment team wanted to get the cross-transit and cross-program issues out on the table and look at the impact of the budget cuts on the enterprise. Fortunately, the State Supreme Court struck down the car tax issue.” “Considering all the factors and the impacts of COVID, WSDOT was in a catastrophic risk manage- ment situation. WSDOT is closely watching I-976. In addition, the travel demand was dropping and the fuel tax revenues were dropping. In some cases, travel was down by 50 percent. It is coming back now, but overall, there is a big impact to the agency of about $4 billion.” Figure 3 is a screenshot John displayed from WSDOT’s website that tracks transit ridership. As can be seen, ridership on some days on some systems fell more than 60 percent compared to ridership from the previous year. He showed similar declines for ferry ridership. Highway travel is down but rebounded somewhat from the early days of the pandemic. Highway travel is down between 7 percent and 18 percent in some areas. ose declines will aect fuel tax receipts that WSDOT depends on.

9 Figure 3. Washington transit ridership fell more than 60 percent in many instances.

386 Implementation of the AASHTO Guide for Enterprise Risk Management John discussed the impact of the budget cuts on Amtrak, the ferry system, and transit: “When we did a 25 percent reduction proposal, we saw that we were doing the cuts within our silos. There was no looking at the impact of a budget cut across the business areas. We developed an approach to look at the budget cuts, taking into consideration the cross-area impact and the impact on WSDOT’s guiding principles.” John and his risk management staff believed that risk management could help WSDOT inform the governor’s office of the risks surrounding proposed WSDOT budget cuts. The department has the different offices prepare proposals for 20 percent budget cuts. These pro- posed cuts were compiled into a 350-page document that would have been difficult for decision makers to use. John’s staff reviewed the AASHTO ERM Guide and used the all the available tools to help the agency make quick decisions using risk management. They looked at the 350-page budget reduction document and, using the tools they had, crafted them in a manner that was conducive to the executive management using the information to make fast decisions. These were somewhat visual. The team worked to reduce the amount of detail and came up with a brand-new methodology of doing a risk assessment in a little more than a week that would help the decision makers. These addressed both the DOT’s guiding principles and the guidelines for doing risk assessments. The risk assessment took both factors into consideration. They used a risk-register-like format seen in Figure 4. They evaluated each cut by two sets of criteria. The first set was based on the DOT’s strategic objectives. These include developing core workplace competencies, department performance, environmental sustainability, financial sustainability, health and safety, legal compliance, reputational credibility, and transportation system performance. Each proposed cut was ranked on a five-point scale for the threat it posed to one or more of the strategic objectives. The second area that the risk team considered was how a cut affected multiple divisions. John said that often a unit or division will consider a cut to it to be low risk, but the cut could have a higher impact on other units. For example, reducing data collection may not affect the data-collection unit much but could have a larger impact on other units that rely on the data for decision making. The risk assessment process they undertook also identified whether a cut would affect more than one work unit. As shown in Figure 4, the product of the risk assessment was a document like a risk register that provides a numeric ranking of the risks to strategic objectives and a ranking of the cross- divisional risks. The outcome provided an overall risk score. Using the risk scores, the risks were sorted to show the executives the highest priorities and lowest priorities based on the overall risk to the organization. The tool also showed some concerns, gaps and opportunities along with some comments. This in essence was a new way of approaching business. The goal was to use a lot of information but to have a succinct, simple, and seamless method that was understandable to the executives and assisted them in making better decisions. The product allowed decision makers to quickly see how each proposed cut affected strategic objectives and how each proposed cut influenced one or more functions. Budget cuts are often discussed in general terms and are reviewed in silos and not as cross- functional risks. Understanding that budget cuts are often made because of financial risks but can have a cross- functional impact, John explained that when doing budget cuts, it is important to look beyond

Expenditure Reduction Rankings Template (Overall Risk: +Additive) Cross-functnl considertns X = 2.0 Concerns, gaps and opportunities Comments Column1Column2 Column22Column3 Column32 Column33 Column3211 Column32112Column3210Column3212 Column6Column7Column8Column9Column10Column11Column12Column13Column48Column47Column46Column45Column44Column43Column42Column5Column14 Column16 1 Division A AB Item 1 22 2 16 3 6 2 2 5 1 3 1 2 1 1 X X X Concern 1 Comment 1 2 Division B CD Item 2 27 1 17 1 10 1 5 2 1 1 2 2 3 1 X X X X X Concern 2 Comment 2 3 Division C EF Item 3 21 3 17 1 4 3 3 1 1 1 1 2 5 3 X X Concern 3 Comment 3 4 Division D GH Item 4 17 4 15 4 2 4 1 1 1 4 1 1 5 1 X Concern 4 Comment 4 5 Division E IJ Item 5 17 4 15 4 2 4 1 1 1 1 5 1 4 1 X Concern 5 Comment 5 Effi ci en t d el iv er y (p ro je ct /P SE /c on st ru cti on ) Co re w or kf or ce & c om pe te nc y D ep ar tm en t p er fo rm an ce En vi ro nm en ta l Fi na nc ia l H ea lth a nd sa fe ty Re pu ta tio n an d cr ed ib ili ty Tr an sp or ta tio n Sy st em P er fo rm an ce Sa fe o pe ra tio ns Pr es er va tio n & m ai nt en an ce D at a- dr iv en d ec is io ns / re se ar ch Le ga l a nd c om pl ia nc e Instructions for Ranking: For each division, enter focus item/subject in column D Identify (X) cross-functional considerations X, these are from the guiding principles Identify weight for guiding principles Rank risk categories 1 low to 5 high Brief description of other concerns/opportunities in column AJ Comments, if any, in column AL IMPORTANT NOTE: TO MAINTAIN FUNCTIONALITY OF FORMULAS, INSERT LINES (DO NOT ADD THEM FOLLOWING THE LAST ROW). TO CUSTOMIZE FOR YOUR OWN USE, de ne Potential Risk Categories (cells L1:S1) and Cross-functional Considerations (cells T1:AA1). Enter your items a er row 11, then delete rows 6-10. There are multiple ways to sort, including overall ran, overall totals, risk rank and cross-functional rank. Page Division Exec Item Overall Totals (Risk + Cross Functional) Ca pa bl e w or kf or ce /s us ta in ab le k no w le dg e Te ch no lo gy / e nt er pr is e bu si ne ss su pp or t St ew ar ds hi p / st ro ng o w ne r So ci al o r g eo gr ap hi c eq ui ty Potential risk categories Overall Rank Potential Risk Category (Total) Risk Rank Cross- Functional Considerati ons (Count*X) Cross- Functional Rank Figure 4. This risk-register-like summary was produced by the evaluation of budget-cut risks.

388 Implementation of the AASHTO Guide for Enterprise Risk Management the financial risks and study the impact on the cross-functional areas and the agency’s guiding principles, and include those risk in the scoring. John said that the risk-based budget assessment was well received by WSDOT leadership, and it was included in the information sent to the governor’s office. The assessment summarized the 350 pages of narrative down to a few pages of tables that allowed for easy assessment of the risks posed by each possible cut. John said an important take way is to avoid the common problem of providing too much information to decision makers. If it takes more than 30 seconds to explain a proposed action, the presenter can lose the decision maker. In the case of the budget-cut risk assess- ment, the WSDOT risk team presented decision makers with a succinct evaluation of what had been an overwhelming amount of information. They highlighted the risks and the impacts. The process used also reinforces Figure 4, which shows risk management as an integral part of the strategic management process. In the case of evaluating impacts of the budget cuts, the cuts were evaluated for the risks they posed to achieving WSDOT’s strategic objec- tives. John said he felt that the process used to assess the proposed cuts contributed to better decision priorities and better alignment with strategic objectives, and that it had executive support and aligned risk treatment strategies and goals. One result of the exercise was that, going forward, the risk office will work with the DOT’s budget office to evaluate proposed budget decisions. This engagement in future financial planning and prioritization is a huge success for the advancement of risk management. John said the budget managers appreciated the analysis. The way the risk staff set up the conclusions helped the budget managers readily see the results of the analysis. Shifting topics, John briefly discussed WSDOT’s efforts to protect the health and safety of its employees during the pandemic. He showed Figure 5, which captures screenshots of WSDOT’s Frontline Heroes information campaign, which encouraged taking the right actions to protect workers from the pandemic, such as wearing masks and using personal protective equipment, as well as taking action to protect employees’ mental health John answered a question from one of the attendees about how the team controls the different horizons of the cuts to different areas. There were different cuts. Some were immediate, others were mid-term cuts, and some were long-term cuts. John and his team evaluated the impacts of the cuts on the different areas. He said, “So, we looked at the long-term consequence of the short-term cuts. To the extent possible, separated them. Working with the legislature, we hoped to overcome some of the risks. Some of the cuts were delayed; in other cases, we planned to slow some of the projects down. The impact of I-976 and COVID would have been very deep cuts. The team also looked at the cross-agency impacts and the impacts to the workforce.” John said the DOT has been doing a lot of cross training to address a lot of workforce risks. Summary John made several points to summarize his conclusions: • Risk assessment in itself is not useful. The value of risk assessment is when it is used by management to assist with decision making. It served WSDOT well during the crisis. • The AASHTO ERM Guide can help assess almost any risk. We are very happy with how we used the Guide and the other tools we had to conduct this risk assessment. • COVID-19 and the revenue risk proved the value of risk management in a time of crisis.

Managing Risks in Uncertain Times – Proceedings of the Webinar 389   Figure 5. Examples of WSDOT steps to protect workers from COVID-19. Managing Pandemic Risks to the Tennessee DOT e next presenter was Paul Degges, TDOT’s the chief engineer. Paul summarized how TDOT is managing risks from the pandemic, including the risks to the workforce, revenue, and agency productivity. He also discussed TDOT’s plan for return to work and the agency’s emphasis on communication tools as a risk-reduction strategy. A lot of TDOT’s risk-mitigation eorts started with the Tennessee Continuity of Operation Plan (COOP). It was originally developed because of the seismic risks that Tennessee faces, and it was updated aer Hurricane Katrina. ese plans were based on natural disasters and were not based on a pandemic. TDOT is used to addressing hurricanes, tornadoes, res, and other such events that have a physical impact on its transportation network. However, around 2010, TDOT did conduct a pandemic planning exercise that contributed somewhat to its ability to respond more quickly to COVID-19. What the COOP contributed was deploying the technology and practices to allow TDOT to begin more quickly working remotely. One of the early risks TDOT faced when the pandemic began was misinformation. Mis- information about fatalities was tremendous, and the pandemic developed political overtones. Also, while the oce sta were sent home to work, the eld sta felt that the oce sta were

390 Implementation of the AASHTO Guide for Enterprise Risk Management paid to not work, while the eld sta had to continue work in the face of a pandemic. TDOT focused on using clear communication as a risk-mitigation strategy to address these and other sta concerns related to the pandemic. Figure 6 is a screenshot of a TDOT-produced video that capitalized on the theme of “working together, staying apart” to capture the intent of the COVID-19 response. e communication strategies were among the best risk-mitigation strategies that TDOT developed. e agency produced many videos and conducted web meetings with regional sta to convey accurate information and explain how TDOT was responding to the pandemic. ere was a lot of fear that TDOT had to address, and that led to TDOT producing basic information about the virus. Paul said that in the COOP, TDOT talked about cleaning oces, cleaning vehicles, and responding to keep the agency productive while protecting the workforce. Masks were a big issue that TDOT had to deal with. Ironically, aer 9/11, TDOT had thousands of masks, but they had given them away to health-care workers before they expired. TDOT had diculty nding masks and even promoted a video on how to make a homemade mask. TDOT thought it was important to produce basic information about how employees could keep themselves safe, as well as when they should and when they do not need to wear a mask. Figure 7 is a screenshot from one video. e safety ocer uses a simple spray bottle to illustrate how the virus attaches to droplets that spread when people talk, cough, or sneeze. e video explains that the value of the mask is to prevent people from spreading the virus, particularly if they do not know they have been infected. A lot of the questions addressed in the video were from workers who asked why they had to wear a mask when they were working alone in a rural setting. Paul said TDOT wanted to clarify when masks were required and when they were not. He said TDOT also provided information on how it planned to clean oces, vehicles, and equipment. e agency wanted to communicate and assure employees that the equipment was clean, that employees were not infecting equipment, and that it was safe for employees to use TDOT’s equipment. TDOT also organized an oce decluttering eort so that workspaces could be sanitized more eectively. Reducing clutter allowed TDOT to keep the workplaces cleaner and allowed private cleaning crews to sanitize oces more eectively. TDOT also focused on keeping vehicles clean so that they could be sanitized for the next driver that was to use them. Figure 6. TDOT adopted the slogan “Working Together, Staying Apart” (https://youtu.be/ 8SaC3MbwfjM).

Managing Risks in Uncertain Times – Proceedings of the Webinar 391   TDOT has three types of employees: oce sta who would work from home, maintenance employees who work from xed sites, and construction employees who travel. For the oce sta, it was a matter of “ipping the switch” to have them work from home. TDOT’s informa- tion technology sta had to acquire some extra monitors and other hardware for telework. at transition, however, happened rather quickly. For the two sets of eld workers, TDOT had to focus on planning maintenance work more carefully to stagger the crews. For a minor resurfacing job, to perform the work, the pre-COVID approach would be to mix the specialty paving crew with the county maintenance crew. Because of COVID, it had the maintenance crew set up trac control in advance, and then the paving crew separately performed its tasks. With the staggered approach, the two crews could remain apart and not risk spreading the virus. At rst there were concerns that many of TDOT’s projects would get delayed. e agency had already implemented many of the strategies to support work from home during earlier emer- gences. TDOT had accelerated going paperless and had technologies in place that supported remote access to data, project plans, and management systems. When the economy was shut down in March through May, TDOT relaxed some of the lane closure requirements. To diminish risks to construction sta, TDOT also staggered sta time in the oce. It expanded the use of video meetings and wireless ling of construction reports to keep sta out of the oce. In terms of opportunities, TDOT accelerated several projects to take advantage of the reduced trac volumes. It streamlined the testing, and contractors in some cases could expedite their construction activities. TDOT implemented virtual certications for construction. e need to accelerate wireless ling of construction reports caused TDOT to expedite the use of that technology. e agency also went to virtual as opposed to in-person processes to test and certify construction inspection sta. Figure 7. A TDOT video used a spray bottle to illustrate how the virus spreads on moisture droplets (https://youtu.be/EzdYqL5yb_Q).

392 Implementation of the AASHTO Guide for Enterprise Risk Management Another risk presented by COVID-19 was a slowdown in the hiring process. at has resulted in 100 vacancies above the usual 400 vacancies that TDOT usually has. Paul said TDOT was in the process of preparing for uncertainties in the coming years. As winter snow and ice operations become a priority, TDOT is looking at the construction sta to help address some the gaps. Con- struction sta will have CDL licenses, so they will also be ready to push snow. TDOT is also trying to bring back retirees on 120-day contracts to augment winter operations. e strategy would ensure that there would be no impact on the retirees’ income while they do any contract work. Paul said that TDOT established a multidisciplinary COVID-19 team to develop strategies to cope with the pandemic. e team identied about 55 issues that TDOT needs to address to sustain its operations through the pandemic. ese resulted in seven dierent strategies. Each of those strategies resulted in tasks that will be performed by agency sta. Paul said, “is is important. For example, if any member of a group is exposed, we will need to communicate with the groups. Many do not have ready access to email. Because almost all employees have cell phones, TDOT is using technology to push information quickly to employees’ cell phones.” Paul is leading a team to measure performance when crews are working remotely. He continued, “In terms of revenue, TDOT is more fortunate than some states. ere are many moving to the state of Tennessee. Trac data in recent days have been only 3 percent below 2019 levels. On average, TDOT is seeing between a 5 and 8 percent drop compared to last year. For revenue, the lost revenue is expected to be about 5.6 percent in September compared to 2019. TDOT is about a $2.3 billion program, half of which is state revenue. e loss is about $100 mil- lion in revenue. TDOT has no debt. While a substantial amount, it is a modest percentage that TDOT should be able to handle by delaying some capacity projects. e impact is on the delayed capacity projects because the focus is still on having good pavement and bridge conditions, grass mowing, and snow and ice removal.” Summary Paul summarized with the following points: • e continuity of operations plan was more to address physical impacts but it was updated and prepared the DOT to respond quickly to the pandemic and similar events in the future. • TDOT depends on its employees and has a substantial number of at-risk employees. So, addressing workforce safety and risk was important, and the communications tools were critically important in helping provide them with good information. • TDOT is planning for a gradual return of oce sta to the workplace but is proceeding slowly to respond to changing conditions—starting at 30 percent and gradually increasing the numbers. • TDOT was preparing to start this gradual return to work in November. Tennessee may have a return-to-work order, and the process that TDOT is putting in place will help it test, improve, and be ready for any such state order. • TDOT looks at both health and productivity. • TDOT gets questions from employees and contractors about how they will all be returning to work. ere is uncertainty on when COVID-19 will allow everyone to come to work. e response really is that uncertainty is the new normal, but TDOT is preparing so that when they are ready, employees can come to back and operate productively and safely. Managing Risks to Minnesota DOT’s Revenues and Workforce Jean Wallace and Chris Berrens discussed how MnDOT was using risk management to miti- gate the risks from the COVID-19 pandemic.

Managing Risks in Uncertain Times – Proceedings of the Webinar 393   Jean described how the agency is incorporating risk into its biennial budget development process. The budget planning process began in April/May of 2020 for the budget that will begin July 2021. The process began by having agency offices develop presentations on their ongoing needs and challenges. Jean said they took the opportunity of those presentations to integrate risk management into the discussions. The next step was to develop policy proposals that would require statutory changes. Following that were preparation of budget change requests. The next step was to prioritize the policy change and the budget change items into a package that goes to the governor’s office. The governor’s office looks at the information from all state agencies and then prioritizes and incorporates the priorities into the governor’s bill for the legislative session that beginning in early January 2021. The budget process has generally been the same as in the past. One difference in this year’s process has been the influence of the pandemic, equity, and the governor’s priorities. A template was provided by MnDOT’s Financial Management Office that included the mis- sion and goals of each office, current annual budget, and spending; it also included information on strategic staffing, percentage of retirement, expected date of staff retirement, and expected turnover. Considering the need as well as risks associated with technologies, MnDOT included information on the technologies needed. The template provided flexibility for each division, and the planning and programming divi- sion looked at the exercise a bit differently and changed “Opportunities and Challenges” in the template to “Risk and Mitigation Strategies.” Each office develops a business plan, and each plan includes the offices’ objectives. The effort involved assessing the risks to those objectives. The steps addressed are to: • Capture and communicate the threats and opportunities that they anticipate in the next biennium in meeting the business objectives, • Show the urgency to resolve the risks using a risk rating of high, medium, and low, • Address how the risk-mitigation strategies will resolve the risks identified, and • Show by using a checkmark which mitigation strategies will require investments. Figure 8 shows an example of the output. It shows a simplified risk register that includes a risk statement and a rating of whether the risk was high, medium, or low. It also includes the risk-mitigation strategy recommended to address the risk and whether additional investment is needed to implement the mitigation strategy. The example office has been seeing an eroding of the budgets, and it needed additional funding to mitigate the risks to its priorities. The effort included identifying the major strategic objectives for the agency to consider (including investment strategies), followed by a ranking of the risks that were identified for the opportunities and challenges in accordance with the investment strategies. Chris Berrens and Deann Beldon worked with the Office of Financial Management and the MnDOT staff working on the strategic plan to develop an exercise for senior leadership to help identify investment priority areas. They took the governor’s transportation priorities from the One Minnesota Plan, and priorities from the State Multimodal Transportation Plan and the internal MnDOT strate- gic operating plan, and grouped them into 11 priority areas. The exercise asked the executives to assess the agency’s ability to influence each objective over the next 2 to 4 years. The executives were asked to view the objectives from four quadrants, as shown in Figure 9. They looked at all 11 areas for (1) where there would be high influence with low effort, (2) where there could be high influence but require high effort, (3) where there could be low influence with low effort, and (4) where there would be low influence even if high effort were invested. The effort was like a risk assessment exercise to help understand the priorities. Based on the assessment, they would hope to understand whether the initiatives could be better

394 Implementation of the AASHTO Guide for Enterprise Risk Management Figure 8. This risk register was the product of an effort to integrate risk into the budget-development process. Figure 9. Risks were assessed by the degree to which MnDOT could inuence them. resourced or if they were resourced adequately. Each area was deemed important, but the exer- cise allowed the executives to see which areas needed additional resources. e outcomes from these would be considered for the budget change item proposal. Each oce was asked to develop a proposal for the budget change that it was requesting in the next plan and show how these linked to the 11 priority areas. In addition, the oces were asked to identify the link to the objectives that would be met by the budget request, how likely the risks were to occur in the next 2 to 4 years, the impact if the risks occurred, how these risks were managed in the past, and how the budget request would address the risk. In addition, each

Managing Risks in Uncertain Times – Proceedings of the Webinar 395   team was to state what trade-os would be made if they did not receive funding in the budget. e response to the last question helped to provide more context about the urgency of the budget request. Aer the exercise, MnDOT had about 50 budget request proposals. e proposals were escalated to the Resource Investment Committee, which is an internal group of assistance commissioners, assistant division directors, and Oce of Financial Management sta. ey were tasked with ranking all 50 of the proposals on a 1 to 5 scale, specically addressing the areas of: • Advancing agency investment priorities, • Importance of expected outcomes, • Importance of advancing risks, • Likelihood of mitigating risks, and • Comfort in accepting trade-os. Based on the scoring, all 50 of the budget requests where then placed in one of six tiers, depending on how they scored in the ve areas, as shown in Figure 10. In this biennial budget cycle, MnDOT looked for opportunities to integrate and weave risk management into the process. e results were certainly inuenced by current events related to equity, employee safety, productivity, technology, and the workforce. MnDOT accomplished this through the identication of risks to the oce and district objectives and through risks to strategic objectives, which included the inuence of current events. e result was that budget funding requests address the most signicant risks facing the agency’s strategic objectives and business plan objectives. Figure 10. Budget requests were placed in tiers once their risks were assessed.

396 Implementation of the AASHTO Guide for Enterprise Risk Management Minnesota DOT Incorporating Employee Safety into Risk Management Chris Berrens then discussed how MnDOT incorporated COVID-19 into its ongoing risk- reduction eorts. MnDOT has also been coordinating with other ERM practitioners on how to respond to risks from COVID-19. By way of background, Chris said MnDOT manages strategic objectives and identies the risks to them. MnDOT emphasized that risk management happens either formally or informally through risk management policies and protocols. In the spring MnDOT, started updating the ERM risk register. It had four risk registers. One is done annually with the FHWA division oce, the second is done with the Minnesota Management and Budget Oce, the third is done with its capital plan, and the register is done with the internal strategic operating plan. is year, MnDOT wanted to bring the four eorts together. By doing so, it thought it could do a better job of communicating key risks to the organization and bring more clarity and purpose. e agency focused on the strategic objectives and how the risks to them are being managed. It also wanted to make sure that it was a highly participatory process for the executives and sta involved. It used a soware tool called Mentimeter that allows more participation within a web- based meeting. e tool allows participants to be engaged in a meeting instead of only listening to one person talking. MnDOT tries to explain to participants how risk management can help reduce the anxiety around key decisions and the trade-os around them. Chris described the process of updating the DOT’s enterprise risk register. Chris explained that they looked to focus on the statewide multimodal policy plan and the internal strategic operating plan. ey asked a cross-functional group of risk managers to evaluate those objec- tives and identify the key risks to each. en, they led the group through a series of prioritization exercises where the group evaluated based on a series of questions and what type of priority they would place on each risk they had identied to the objectives. ey then asked participants to consider how much eort the agency is investing into mitigating the risks. at allowed them to better understand the overall makeup of risks, how much the agency has inuence in manag- ing them for the next 4 years, and which of these risks the DOT would continue to struggle to manage irrespective of their best eorts. Chris noted a couple of objectives that were aected by COVID. One was safety to employees, which had always been important but became even more pressing with sta in the eld who needed protective equipment so they could work to keep the transportation system going. e DOT also saw threats to the continuity of operations management. COVID highlighted the importance of keeping a COOP updated. Events such as COVID and cyberattacks demonstrate how risk can bring an agency to a stop. Funding was another area of uncertainty. e DOT is looking at strategies for how to best respond to any uncertainties and variabilities with the budgets. It was not only the pandemic that inuenced the risk register, but the George Floyd death also highlighted the risks to an equitable and inclusive workplace. e death of George Floyd caused MnDOT to address the higher rate of turnover it sees with people of color and women. at increased turnover represents a risk to creating an inclusive workplace. Chris also discussed his participation with a Twin Cities Enterprise Risk Management Roundtable group. e group has been meeting frequently and engaging in knowledge sharing to address the risks relating to COVID-19. Two approaches on return to work were discussed by this group. One is a phased approach and the other is a staggered approach. e round- table had a discussion about the need to ensure safe return to the oce environment while not

Managing Risks in Uncertain Times – Proceedings of the Webinar 397   isolating employees who returned to work such that it minimizes the benets of the return-to- work strategy. e group also considered retaining the work-from-home situation until there was a vaccine available. An idea that came from participation in that group was the use of a survey and other eorts to help employees deal with the stress of working during the pandemic. Stresses could include the stress of balancing working from home while helping children who are attending remote learning. Another lesson learned from the roundtable participants was that many employers are moving to a staggered-workplace approach. ere is a growing recognition that bringing back all employees presents the need to continue isolating people at work. If people must be isolated in the oce, it negates the benets of returning to the oce. MnDOT is also evaluating the risk to having a COVID-19 outbreak result in closing a remote, isolated truck station. If such an event were to occur, an area’s snowplow operations could be aected. MnDOT is managing the risk by developing back-up drivers and training them so as to have drivers available to cover the truck garages if drivers in these locations are aected by the pandemic. Managing Risks to Employee Safety at UDOT Chris Mabey of UDOT discussed how the department was addressing the culture of employee safety before COVID and how it is incorporating COVID risk-reduction strategies. Chris said that in everything they do, there is some limiting factor, not unlike the limiting factors with the safety features of a car. Although brakes can safely stop a car, the safety of the car is limited by the condition of the brakes and the actions of the driver. He said the analogy of limiting factors holds true for programs to reduce the risk to employee safety. Another analogy is getting a doctor’s diagnosis of an illness. e doctor may provide a treatment plan, but there is then the need to adopt a prevention plan to stay healthy. Chris described a concept like a maturity model for employee safety in an organization (as shown in Figure 11). e lowest level is awareness, followed by consent, then participation, ownership, and integration. He said the objective is to move the organization and the people Figure 11. The levels of maturity for employee safety programs.

398 Implementation of the AASHTO Guide for Enterprise Risk Management within it to the right so that employee safety is integrated into all agency activities. Chris also described the matrix shown in Figure 12 and said that UDOT’s goal is to be at the far right at level 5 of maturity. For example, under accountability, if the agency has low maturity, accidents may be responded to with blame. In a consent environment, safety-related issues may not be shared. In a participa- tion level of maturity, safety information may be shared with only a select few. In the ownership level of maturity, safety information is widely shared across the organization. At the highest level of maturity, there is high accountability, and information regarding safety-related issues is sought aer and seen as an opportunity for improvement. Chris said that self-assessing the agency by the Figure 12 matrix allows the agency to assess the maturity of its safety program. e safety program is like accepting the doctor’s diagnosis and prescription. e treatment is only as eective as the ability or willingness of employees to participate and integrate into the safety culture. Chris said agencies’ maturity could vary across the dierent programs. An agency may be mature or in the integration level for work-zone safety or cranes, but it could be low in other areas such as fall protection or accident investment. Chris described UDOT’s CARES (Communicate, Ask, Responsibility, Empower, and Share) program. As shown in Figure 13, each letter in the acronym stands for another element of the CARES approach. Communication should be open and frequent. Employees feel empowered to ask about safety measures and get their questions answered. Safety is viewed as everyone’s responsibility. Employees are empowered with the necessary resources to nd and x problems. e sharing of information is seen as an opportunity for improvement. At the start of COVID, the agency’s operations center was activated, but the existing continu- ity of operations plan did not really anticipate a pandemic. Five days aer the center was opened, Utah experienced a 5.7 magnitude earthquake and then a large snowstorm. However, by May the department operations were coping with COVID and the operations center stood down. e department then developed a stabilization plan to continue coping with COVID. Figure 14 shows the dierent levels of workplace stabilization. e UDOT COVID plan addressed major areas of operations and described the level of response based on the severity of the COVID impact. e stabilization plan was multifaceted and involved dierent levels of UDOT employees covering dierent subject areas and expertise. It addressed who could work from home and who could come to work. UDOT is operating under what it calls “unstable conditions,” which call for limited public and visitor access, employee entry points controlled, telework for any employee who can, and protocols for keeping workplaces sanitized and employees masked and socially distanced. e agency is doing drills on what it should be doing to be proactive and makes sure it has the necessary masks, protection, equipment, and so forth in place. Update on the AASHTO Subcommittee on Risk Management Jean Wallace provided an update on the activities of the AASHTO SRM. Jean noted that the committee is a group that provides a good network of risk management, both for those who are experts in the eld and those who are developing their maturity. e subcommittee’s goals are to: • Serve as a forum to share ideas and examples; • Develop guidelines, training, and resources; and • Research, develop, and disseminate risk management tools.

Figure 12. A description of the attributes at each level of maturity.

400 Implementation of the AASHTO Guide for Enterprise Risk Management Figure 13. A description of the CARES framework for employee safety. e subcommittee meets on the second Monday of even-numbered months. Jean is the chair and Nathan Lee of UDOT is the vice chair. e committee is sponsoring three research projects: • NCHRP Project 20-123(04), “Strategic Planning Session and Development of a Risk- Management Research Roadmap” • NCHRP Project 23-09, “Scoping Study to Develop the Basis for a Highway Standard to Conduct an All-Hazards Risk and Resilience Analysis” • NCHRP Project 23-15, “Prioritization of Risks Related to Connected and Automated Vehicles and Emerging Technologies” e subcommittee is partnering with the Subcommittee on Asset Management on how to update the risk registers in the next generation of asset management plans. Jean noted that all members of the COP have been invited to participate in the subcommittee. Next Steps for the NCHRP Project 20-44(02) Shobna thanked everyone for participating and thanked the presenters. She also summarized the next steps for the project. • e direct support to the three pilot states is winding down and will end in November. • ere will be two more COP meetings. e nal meeting will discuss transitioning the project’s eorts to the Subcommittee on Risk Management. • By the end of the year, a project report will be draed and submitted to the project panel. e panel is expected to review and approve the report, and the project should be completed by March of 2021.

Figure 14. The UDOT plan showing the level of work place stabilization.

402 Implementation of the AASHTO Guide for Enterprise Risk Management Shobna noted that the nal project report will include more than a summary of proceedings. It will include several valuable risk-mitigation tools developed by the pilot states as part of this project. It will include strategies for how to implement ERM in DOTs. In addition, it will have a process to assess environmental risks to assets and corridors, a toolkit for hiring managers to reduce the risk of hiring the wrong person, or losing the right person, a risk tool to identify risks that could delay or increased costs to projects, a checklist to ensure that all project elements are complete before bid-letting to reduce the risk of letting delays and change orders, and a list of strategies to try to reduce the risk that the workforce will not be diverse and inclusive. It is expected that the strategies in the nal report will be useful to other DOTs. Final Comments In his nal comments, Tim Henkel said that the presentation highlighted how agencies are using risk management to assess and mitigate the risks created by the current crisis. e pre- sentation covered a range of topics, including how DOTs are assessing and managing risks to revenues and their employees, and how agencies are reducing risks to their productivity. Tim said he came away from the webinar even more convinced that risk management sup- ports decision making in times of crisis. Also, the AASHTO ERM Guide does provide guidance on how to address almost any risk, including those discussed in the webinar. Finally, COVID-19 is an example of a risk that has proved the value of using risk management. Tim asked the attendees to draw on the resources of this project and resources available through TRB, AASHTO, and FHWA, as well as through the AASHTO Committee on Perfor- mance Management and the Subcommittee on Risk Management. Tim thanked the audience for attending, thanked the presenters, and thanked NCHRP, FHWA, and AASHTO for their support of risk management. Tim thanked the consultant team for all of the work done on this project and said he looked forward to the nal report and infor- mation on the implementation activities.

Abbreviations and acronyms used without de nitions in TRB publications: A4A Airlines for America AAAE American Association of Airport Executives AASHO American Association of State Highway Officials AASHTO American Association of State Highway and Transportation Officials ACI–NA Airports Council International–North America ACRP Airport Cooperative Research Program ADA Americans with Disabilities Act APTA American Public Transportation Association ASCE American Society of Civil Engineers ASME American Society of Mechanical Engineers ASTM American Society for Testing and Materials ATA American Trucking Associations CTAA Community Transportation Association of America CTBSSP Commercial Truck and Bus Safety Synthesis Program DHS Department of Homeland Security DOE Department of Energy EPA Environmental Protection Agency FAA Federal Aviation Administration FAST Fixing America’s Surface Transportation Act (2015) FHWA Federal Highway Administration FMCSA Federal Motor Carrier Safety Administration FRA Federal Railroad Administration FTA Federal Transit Administration GHSA Governors Highway Safety Association HMCRP Hazardous Materials Cooperative Research Program IEEE Institute of Electrical and Electronics Engineers ISTEA Intermodal Surface Transportation Efficiency Act of 1991 ITE Institute of Transportation Engineers MAP-21 Moving Ahead for Progress in the 21st Century Act (2012) NASA National Aeronautics and Space Administration NASAO National Association of State Aviation Officials NCFRP National Cooperative Freight Research Program NCHRP National Cooperative Highway Research Program NHTSA National Highway Traffic Safety Administration NTSB National Transportation Safety Board PHMSA Pipeline and Hazardous Materials Safety Administration RITA Research and Innovative Technology Administration SAE Society of Automotive Engineers SAFETEA-LU Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (2005) TCRP Transit Cooperative Research Program TDC Transit Development Corporation TEA-21 Transportation Equity Act for the 21st Century (1998) TRB Transportation Research Board TSA Transportation Security Administration U.S. DOT United States Department of Transportation

Transportation Research Board 500 Fifth Street, NW Washington, DC 20001 ADDRESS SERVICE REQUESTED ISBN 978-0-309-09462-7 9 7 8 0 3 0 9 0 9 4 6 2 7 9 0 0 0 0

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The AASHTO Guide for Enterprise Risk Management, published in 2016, defines enterprise risk management as “the formal and systematic effort to control uncertainty and variability on an organization’s strategic objectives by managing risks at all levels of the organization.”

The TRB National Cooperative Highway Research Program's NCHRP Research Report 986: Implementation of the AASHTO Guide for Enterprise Risk Management documents how several state departments of transportation are adopting risk management principles and practices.

Supplemental to the report are a presentation, a risk assessment tool, a Washington State Department of Transportation budget template, and a video of a webinar by the project team.

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