MARCH 2013

Risk-Based Transportation

Asset Management:

Managing Risks to Networks, 

Corridors, and Critical Structures

RepoRT 4: managing risks to critical assets
-

Notice 

this document is disseminated under the sponsorship of the U.s. 

Department of transportation in the interest of information 

exchange. the U.s. government assumes no liability for the use 

of the information contained in this document. 

the U.s. government does not endorse products or manufactur 

ers. trademarks or manufacturers’ names appear in this report 

only because they are considered essential to the objective of 

the document. 

Quality Assurance Statement 

the Federal Highway administration (FHWa) provides highquality information to serve government, industry, and the public 

in a manner that promotes public understanding. standards and 

policies are used to ensure and maximize the quality, objectivity, 

utility, and integrity of its information. FHWa periodically reviews 

quality issues and adjusts its programs and processes to ensure 

continuous quality improvement. 

Note fRoM tHe DiReCtoR 

the Federal Highway administration (FHWa) continuously 

seeks innovative ways to improve the management of the 

nation’s highway infrastructure. the office of asset management offers this series of reports on risk management as 

another means by which transportation agencies can better 

understand and manage their highway assets. 

the use of risk management among U.s. transportation 

agencies largely is limited to managing risk at the project 

level generally focused during construction. risk management at the project level helps to identify threats and opportunities to projects’ cost, scope and schedule. However, we at 

the FHWa along with our partners at state and local transportation agencies recognize the growing need for a better 

understanding of risk management at program and 

organizational levels. 

today, the leading international transportation, banking and 

insurance organizations have explored the benefits of risk 

management at the program and enterprise level and use it 

as a tool to protect their investments. Based on those practices, the office of asset management is offering this series 

of reports on how risk management can be scaled up to 

asset management programs, and to the entire enterprise 

of a transportation agency. 

it’s important for highway agency officials to consider 

incorporating risk management in the decision-making 

process for several reasons. First, they have seen the benefits 

of risk management at the project level. second, they have 

heard from their international colleagues that risk management can pay dividends when used at the broader program 

and enterprise level, particularly when agencies don’t have 

enough funding to address their priorities. third, managing 

risk is an integral step in following a comprehensive asset 
 ii Risk-Based Transportation Asset Management 

management framework as described in the AASHTO Asset 

Management Guide—A Focus on Implementation. Finally, the 

U.s. congress has proposed that states develop “risk-based 

transportation asset management plans.” these factors 

convinced the office of asset management to offer this 

series of reports. 

We believe you will find these reports helpful as you develop 

your asset management program and make investment 

decisions. this series of reports will help the transportation 

agencies to meet the increasingly complex challenges 

involved in making decisions and communicating them 

effectively to the public. 

sincerely, 

Butch Wlaschin 

Director of the office of asset management

Risk-Based Transportation Asset Management iii
 

contents 

Introduction ......................................... 1
 

Risk and Its Management ............................. 1
 

Risk Management: A Common Idea,
 

A New Application .................................. 2
 

risk management: tradeoffs, transparency to Preserve
 

critical networks.................................. 3
 

the Disproportionate importance of key corridors,
 

networks and Facilities ............................ 11
 

the economic risks to corridors and networks....... 14
 

The Steps for Risk Management of Networks 

and Corridors ....................................... 16
 

establishing the context ........................... 16
 

identification of risks.............................. 16
 

analysis and evaluation of risks .................... 18
 

treatment of risks ................................ 21
 

examples of Risk Management of Corridors ........... 22
 

risk management in michigan Dot................. 22
 

risk management in Florida Dot................... 29
 

risk management in Washington Dot .............. 36
 

Conclusions ....................................... 42
 
Risk-Based Transportation Asset Management 1 

introduction 

transportation asset management (tam) enters a new 

risk-based era with the enactment of the moving ahead 

for Progress in the 21st century act, also known as maP-21. 

the legislation requires a risk-and-performance based asset 

management plan for bridges and pavements on the national Highway system (nHs). maP-21 also requires development 

of a national freight network that consists of critical 

corridors, facilities and connectors. 

as transportation agencies develop their asset management 

plans, it is likely that they will stratify their risks based upon 

the importance of the key networks, corridors and facilities. 

this report, the fourth in a series of five reports on risk 

management, examines how agencies may apply risk-based 

asset management practices to key networks, corridors and 

facilities, particularly ones moving freight. the first three 

reports covered an overview of risk management, multi-level 

management of risks and achievement of policy objectives 

through risk management. 

risk and its management 

as these earlier reports have defined, risk is the positive 

or negative effect of uncertainty or variability upon agency 

objectives. this internationally recognized definition broadens the consideration of risks to be more than only threats. 

the implication of this broader definition is that risk management can be applied not only to threats but also to 

opportunities created by uncertainty, variability or change 

as they relate to the achievement of all organizational 

objectives. risks to the achievement of agency goals, 

reaching performance targets, meeting public expectations, 

satisfying customers or achieving acceptable condition 

and performance on key highway networks, corridors or 

individual assets could also be managed. 
 

 2 Risk-Based Transportation Asset Management 3 

Building from this broad definition of risk, these reports use 

the definition of risk management as, the cultures, processes 

and structures that are directed towards the effective 

management of potential opportunities and threats. interim 

Federal Highway administration (FHWa) guidance notes 

that transportation agencies should consider managing risk 

as part of the strategic and systematic process of operating, 

maintaining, and improving physical assets and managing 

their highway network with a focus on the program and 

agency level. FHWa also encourages states to continue 

addressing risk at the project level. 

risk management: a common 

idea, a new application 

the formal terminology of a risk-based approach to managing assets on networks and corridors may be new to some 

U.s. transportation agency officials. However, many aspects 

of its practice will be familiar. Highway agencies have long 

practiced functional classification. that is the classifying or 

stratifying of highway routes by their importance to key 

transportation objectives, such as connecting major population centers, moving freight, serving as evacuation routes, 

serving key ports or linking economic generators. routes 

of lesser criticality have lower classifications, lower design 

standards and often receive less investment. 

Functional classification is a form of risk management. 

Failures on major routes create greater risk of failure to 

key organizational or public objectives, such as providing 

connectivity, ensuring safe transportation, moving freight 

or providing access to key facilities during emergencies. 

the greater volumes on major networks such as the nHs 

create greater opportunities to improve travel times, reduce 

freight costs or improve economic competitiveness. Highway 

agencies have for decades understood and developed their 

Risk-Based Transportation Asset Management 

transportation programs around a hierarchical classification of 

key routes. they just have not called it a risk-based approach 

to managing networks, or the corridors within them. 

the requirements of maP-21 and risk-based asset management provide a new opportunity for Dots to explain their 

decisions and demonstrate to the public and policy makers 

that they are responsible stewards of scarce resources. a 

risk-based approach to managing corridors and networks 

can allow Dots to make the case for the difficult tradeoffs 

so many are forced to accept because of insufficient 

revenue to maintain the entire system adequately. When 

resources are limited, it provides them an opportunity to 

convey to policy makers and to the public the logic and 

reasoning behind the need to accept lower levels of service 

on lesser used roads in return for preserving performance 

and minimizing risks to more important ones. such strategies typically represent a well thought-out and methodical 

approach to decision-making. they demonstrate the strategic best use of limited resources to preserve condition and 

performance on key routes, as opposed to spreading limited 

funds equally across the network and accepting a statewide 

drop in highway condition and performance. 

Risk Management: Tradeoffs, Transparency to 

preserve Critical Networks 

a few examples below illustrate existing practices of risk 

management, trade-offs and the transparency in the use of 

these practices, where an agency is able to communicate 

with and obtain buy-in from policy makers and the public 

on how it is making key decisions in the prioritization and 

use of public resources for the management of its assets. 

North Carolina DoT: A Tiered Approach to Managing Risks 

actions by the north carolina Dot are an example of a 

risk-based approach to managing networks and the assets 
 4 Risk-Based Transportation Asset Management 5 

within them. the Dot is responsible for over 79,000 miles 

of roads that include most of the public road system in the 

state including most local roads. the Dot works closely with 

local officials and for many years put special emphasis upon 

local needs. However, the Dot realized that sustaining a high 

level of condition on local roads was coming at the expense 

of the more heavily travelled nHs. 

the demand for resources from all segments of the road 

network necessitated a risk-based approach to decisionmaking that could assist the agency in making tradeoffs. 

While developing the statewide, long-range multimodal 

transportation Plan, the agency categorized the highway 

network in three tiers. shown in Figure 1 are the statewide 

(interstate/nHs), regional (nc/lower importance U.s.) and 

sub-regional (secondary and municipal routes) based on 

their function and level of importance to different constituencies at the state, regional and sub-regional level. 

Just based on the vehicle miles traveled (Vmt), the failures 

of the higher functional classes create a greater impact on a 

Figure 1. NCDOT’s risk-based approach to categorizing its 

highway network. (soUrce: ncDot) 

Statewide 

Tier 

Regional 

Tier 

Subregional 

Tier 

Increasing 

State 

Interest 

Increasing 

Local 

Interest 

Risk-Based Transportation Asset Management 

larger section of the user community. this categorization 

allows the agency to gauge the relative risk of asset degradation or failure upon its population and economy. By 

communicating this categorization, the agency is able to 

explain to the public and the stakeholders that it is acting 

responsibly when it gives higher priority to the higher 

classification roads and ensures that they are maintained 

so as to have a lower risk of failure. it demonstrates that 

the agency is keeping public safety, economic growth 

and other public concerns at the forefront of its decisionmaking. Having the three tiers makes it easier for the agency to communicate the impact of risks to the state, region 

or sub-region to policy makers and the public. this provides 

the appropriate perspective and helps the agency gain the 

needed support when it has to make difficult investment 

trade-offs. 

the north carolina Dot has set higher targets for bridges 

on the high-volume interstates when compared to the 

Primary or secondary systems. table 1 shows that with 

limited resources, achieving targets for the higher volume 

systems such as the interstates means accepting lower 

performance on the lower volume systems. Using a risk 

management approach to making tradeoffs, the agency 

can demonstrate responsible decision making to its 

stakeholders. 

Utah DoT: Risk Management and Trade-offs 

an example from the Utah Dot illustrates a similar decisionmaking and trade-off process. Figure 2 (see page 6) shows 

the number of miles of pavement in overall “good” condition reducing while those with “Poor” and “Fair” condition 

increasing over the years. this trend, caused by insufficient 

pavement budgets, forced the Utah Dot to take a riskbased approach to setting higher condition targets for 

its major networks, at the conscious expense of its lower 

functional classes. 
 

 

 6 Risk-Based Transportation Asset Management Risk-Based Transportation Asset Management 7 

INTERSTATE PRIMARY SECONDARY 

Bridge 

Components 

Measure 2010 

Target 

State 

Average 

Score 

2010 

Targets 

State 

Average 

Score 

2010 

Target 

State 

Average 

Score 

Decks 

(Concrete) % >= 6 85 85 80 79 75 84 

Superstructure 

(Concrete) % >= 6 90 81 85 60 80 65 

Superstructure 

(Steel) % >= 6 90 89 85 82 80 81 

Superstructure 

(Timber) % >= 6 90 NA 85 43 80 69 

Substructure 

(Timber) % >= 6 90 NA 85 40 80 42 

Substructure 

(Concrete Pile) % >= 6 90 80 85 75 80 81 

Substructure 

(Steel Pile) % >= 6 90 91 85 84 80 81 

Substructure 

(Concrete Piers) % >= 6 90 91 85 81 80 81 

NBIS Culverts % >= 6 85 86 85 86 85 89 

Non-NBIS 

Culverts Good 80 84 80 74 80 56 

Overhead Sign 

Structures Good 95 95 95 93 95 88 

Table 1. NCDOT sets higher targets and sustains higher 

conditions on the higher functional classes. (soUrce: ncDot) 

Figure 3 (see page 8) shows the impact of budgets 

(illustrated by the green bars) not increasing from 2013 

to 2030. the chart also shows that ensuring the overall 

condition index (oci) of the nHs in Utah does not drop 

below 75 by 2030 will mean letting the non-nHs 

pavement conditions drop to below 50. 

the red trend line in Figure 3 represents pavement conditions 

on the interstate Highway system and the light blue line, the 

conditions on the nHs through 2030. Using risk-based 

investments, the Utah Dot is sustaining pavement conditions 

Figure 2. Pavement Condition trend in Utah. (soUrce: UtaH Dot)

Pavement Conditions Center Lane Miles of Good, Fair and Poor 
 8 Risk-Based Transportation Asset Management 9 

Projected Budget Versus Overall Condition Index 

Figure 3. Projected budgets and Overall Condition Index of 

pavements in Utah. (soUrce: UtaH Dot) 

on its higher functional classification networks. However, it 

is clearly articulating to the public and policy makers that 

the tradeoff to sustaining those routes with the projected 

funds means accepting lower conditions on the non-nHs 

ones. the condition of the non-nHs routes, shown in the 

purple trend line, show substantial declines from 2015 

through 2030 if pavement budgets remain static as predicted by the green bars. 

Minnesota DoT: Risk-Based pavement Investment Strategy 

with public Input 

the minnesota Dot used an explicit risk-based analysis 

paired with public comment to identify a risk-based pavement investment strategy as seen in Figure 4. the rising red 

line shows that the miles of pavement in poor condition 

would rise significantly from 2010 to 2034 based upon 

current investment levels. although the department’s target 

Risk-Based Transportation Asset Management 

was to have no more than 2 percent of its pavements in 

poor condition, its pavement forecasts predicted that the 

percentage of poor condition pavements would rise to more 

than 40 percent by 2034 based upon its currently available 

investment. it realized that it could not afford to achieve its 

targets and it engaged the public in a risk-based analysis. 

Based on focus groups and public comment, the Dot 

determined that the public would accept up to 10 percent 

of the lane miles in poor condition. the department then 

identified a risk tolerance of having between 5 percent and 

10 percent of its pavements in poor condition as illustrated 

by the green band. then, based upon higher investment 

levels, it is now forecasting the actual poor pavement conditions to fluctuate between 5 and 10 percent of its inventory 

through 2034. this analysis showed that the department 

was initially too conservative in attempting to maintain no 

more than 2 percent of its pavements in poor condition. 

Current Investment Level 

Percentage of miles in poor condition 

 

50%
 

45%
 

40%
 

35%
 

30%
 

25%
 

20%
 

15%
 

10%
 

5%
 

0%
 

Figure 4. Minnesota DOT’s use of risk-based tradeoffs to set 

a “risk appetite” acceptable to the public. 

(soUrce: minnesota Dot) 

Public’s risk tolerance 

of up to 10% for poor 

pavements 

Risk Based Investment 

Level (Rate of Recovery 

Approach) 

Flat Investment 

Level (Specific 

Performance Target) 

2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 
 

 10 Risk-Based Transportation Asset Management 11 

effective communication with the public indicated their 

willingness to accept a lower standard, allowing the department to set a lower target, yet meet public expectation. the 

exercise illustrated that the “risk appetite” for the public was 

for up to 10 percent of the pavements to be in poor condition. this also allowed the agency to give the necessary 

focus and priority to the critical segments of corridors 

and higher classification roads while meeting the public 

expectation and tolerance for risk. 

VicRoads: The “Impaired Asset List” a Tool for 

Risk Management 

this type of risk-based asset investment decision is taken to 

another level in the australian state of Victoria. Vicroads, 

the state’s highway agency, has been emphasizing risk 

management for more than a decade. the Vicroads report 

titled, “stitch in time-Five years of successful maintenance in 

Victoria”, notes that, “Road users expect better conditions on 

busy roads.” Vicroads’ risk-based budgeting process invests 

more in more heavily travelled and economically important 

routes and accepts lower conditions on the lesser ones. it is 

unable to keep all roads in sound condition and must accept 

a certain percentage of the low-volume pavements to fall 

below acceptable levels. once a pavement deteriorates and 

still cannot be repaired because of budget constraints, the 

roadway is formally added to an impaired asset list. this 

listing allows it to be signed as an impaired road, the speed 

limit is reduced and the drivers are informed of its impaired 

condition. this formal designation not only notifies state 

budget authorities that the department has made a riskbased decision to post the pavement as impaired, it also 

protects the department from legal liability should crashes 

occur due to poor pavement conditions. although agency 

officials prefer not to post roads as being impaired, the 

ability to do so allows them to re-direct scarce funds to 

higher-volume and more economically critical routes. 

Risk-Based Transportation Asset Management 

these examples illustrate that a risk-based approach is 

already being practiced by several state transportation 

agencies nationwide. Hence formalizing the approach consistent with maP-21 requirements does not involve embarking 

on an entirely new compliance program; rather it involves 

formalizing the existing practices into a holistic approach for 

the state. in doing so, it becomes important to examine how 

the transportation assets or groupings of assets within a 

state can be prioritized to meet national and state agency 

objectives in an optimal manner. 

The Disproportionate Importance of 

Key Corridors, Networks and Facilities 

a primary objective of transportation agencies in the United 

states has long been to provide the infrastructure assets and 

operational support necessary to efficiently and safely move 

people and goods across the nation by providing the connectivity necessary for economic growth while protecting 

the environment for future generations. 

a risk-based asset management approach to moving people 

and goods focuses on evaluating the networks, corridors and 

facilities that create the greatest threats to and opportunities 

for achieving goals of mobility and safety. it also considers 

risks to the achievement of an agency’s freight or economicdevelopment objectives. 

some systems, corridors and facilities illustrate the disproportionate economic importance of a few key high-risk assets. 

Because of their high use, any failure of assets or degradation 

of service along these networks, or the unavailability of 

network segments for any length of time, can cause major 

impacts to the safety and movement of people and goods. 

to illustrate, the national Highway system comprises 

4 percent of the public road miles but carries about 
 12 Risk-Based Transportation Asset Management 13 

Definitions __________________________

Across countries and industries, the terms used 

to define risk vary. The following descriptions 

define the terms used to refer to the various 

kinds of risk in this report. 

enterprise risk ______________________

This report uses the term enterprise risk to refer 

to all levels of risk being managed by a state 

department of transportation. 

Agency risk __________________________

This report refers to agency risk as the highest 

level of risk within an organization that affects 

a DOT’s ability to accomplish its mission and 

achieve its strategic goals and objectives. 

progrAm risk ________________________

Program risks are ones that could affect the 

achievement of program objectives. Programs 

generally are defined as collections of related 

projects or on-going efforts to ensure achievement of specific organizational objectives. 

project risk _________________________

Project risks are those that effect the successful 

accomplishment of project objectives. 

75 percent of the nation’s truck freight (Figure 5). the 

interstate Highway system, which is a subset of the nHs, 

comprises 1.5 percent of all public roads but carries 47 

percent of all combination trucks, and 22 percent of all 

single-unit trucks. the i-95 corridor serves 10 percent of the 

nation’s landmass but 37 percent of its population. the 

marquette interchange in milwaukee handles an estimated 

30 percent by value of all of Wisconsin’s truck freight. the 

Risk-Based Transportation Asset Management 

top 10 container ports handle 78 percent of the nation’s 

container volume out of 86 container ports nationally. two 

sister ports, los angeles and long Beach, handle 33 percent of all national container imports and exports.[i] any loss 

of serviceability or issues within these key assets creates 

disproportionate economic impacts, thus making them 

high-risk facilities. effective access to and from these ports 

are critical to the movement of goods and have major 

impact on the Us economy. 

Besides assigning priority to assets on high priority highways, transportation agencies often also consider other 

highly significant non-nHs routes that carry lower volumes 

of traffic. segments of these routes may be critical to 

national security or to the regional and sub-regional needs 

of the state. some serve the unique needs of connecting 

economic hubs and regions in the state that are important 

Figure 5. Annual Average Daily Truck Traffic on the NHS. 

(soUrce: U.s. Dot, FHWa, oFFice oF FreigHt management anD 

oPerations, FreigHt analysis FrameWork, Version 3.1 2010) 
 

NHS Highways

 Below Capacity 

Approaching Capacity

 Exceeding Capacity 

Figure 6. Projected Peak Congestion on the National 

Highway System in 2020. 

 14 Risk-Based Transportation Asset Management 15 

local economic generators. others serve as important 

evacuation routes, provide connectivity to defense facilities, 

provide non-redundant access routes to locations and serve 

the safety needs, such as, being the only bridge providing 

connectivity out of a community or section of the state. an 

example of one may be the famous Highway 1 and its bridges and causeways connecting the Florida keys with the 

mainland. on a smaller scale, the mauckport Bridge connecting mauckport, indiana, with Brandenburg, kentucky, is 

the only ohio river crossing in a 60-mile long section of the 

river. any risk to that structure creates serious consequences to those rural communities’ access and economy. 

The economic Risks to Corridors and Networks 

approximately 12.6 billion tons of freight move across the 

nation’s roadways every year.[ii] With cheaper goods competing for market share, minimizing the delivered cost of 

goods has become more important, resulting in a lack of 

appetite to stock inventories and a move towards adoption 

of “Just in time” practices. Delays are therefore costly. 

according to FHWa, the 2,110 freight bottlenecks on highways throughout the United states cause more than 243 

million hours of delay to truckers annually. a conservative 

estimate puts the annual costs to truckers at $6.5 billion per 

year.[iii] also, with the continuously increasing cost of fuel, 

the public has less appetite to be stuck in traffic for long 

periods. the FHWa “Freight story” (UsDot FHWa 2008)[iv] 

notes that Just-in-time inventory is hampered by congestion and the resulting reduction in reliability and increase in 

travel times. these delays have an impact on the U.s. economy. thus, reliable, available and well-functioning roadway 

networks are important to the efficient movement of freight, 

a factor critical to keeping cost of products low. 

the “Freight story” estimates that even with growth in 

air-freight, maritime, and rail services, about 29 percent 

Risk-Based Transportation Asset Management 

of the urban nHs will be congested, with an additional 

13 percent approaching congestion, during peak periods 

in 2020. By comparison, 10 percent of the urban nHs was 

congested in 1998. By functional class, urban interstates are 

and will continue to be the most traveled segments, with 

congestion reaching 53 percent in 2020.[v] these projections 

of the peak congestion on the nHs are shown in Figure 6. 

it is evident that even within the important nHs, certain 

urban segments will continue to see higher congestion over 

the next decade and will become ever more critical to the 

nation’s economy. Hence, loss of asset availability and degradation of services on the nation’s highway network clearly 

presents a risk to safety, mobility, convenience and 

commerce, all of which are important national goals. 

key transportation corridors, networks and critical facilities 

will therefore constitute a logical priority as a transportation 

agency assesses where within the network of assets it 

manages, the impacts to the economy, safety and key 

national or regional priorities are most likely to be felt. 
 16 Risk-Based Transportation Asset Management 17 

the steps for risk management 

of networks and corridors 

establishing the Context 

the first step in risk management is to establish the context 

for the organization and the objectives it seeks to achieve. 

the risks to be prioritized are those most likely to create 

uncertainty regarding achievement of the organization’s 

objectives. 

the international organization for standardization (iso) 

and other bodies provide the general framework for risk 

management as illustrated in Figure 7. For transportation 

asset management, the national goals in maP-21 combined 

with state goals and targets provide the context surrounding the management of transportation assets identified in 

the first step. 

ensuring sound asset conditions allow a network, corridor 

or facility to achieve its intended objective. that may include 

public safety, movement of people and freight, national 

security, moving goods, state or local connectivity, or for 

achieving environmental or social objectives. irrespective of 

the reason, establishing the context helps the prioritization 

that will be necessary in the risk management process. 

Identification of Risks 

the second step in the process will involve identifying and 

prioritizing the major assets and the risks to them. some 

of the major assets will be readily identifiable, such as the 

components of the interstate Highway system. However, 

others such as the most at-risk assets on nHs intermodal 

connectors may be less apparent. as part of the corridor 

planning effort, an inventory of key assets will be necessary. 

Risk-Based Transportation Asset Management 

establish Context 

Identify Risks 

Analyze Risks 

evaluate Risks 

Treat Risks 

Communication and Consultation

Monitoring and Review 

Figure 7. ISO’s risk management framework. 

once those assets are inventoried, the possible risks to them 

can be identified. these risks could be possible threats such 

as increasing traffic loadings, or climatic, seismic or geologic 

threats. they could also include organizational risks (such 

as weak internal management systems) or financial risks 

(such as increasing costs, decreasing revenues and resulting 

budget constraints). 

risk identification could be based on the probability of asset 

failure or degradation of performance and the resulting 

impact to the objectives or goals of the specific network or 

corridor. the expected impact and the agency’s risk tolerance 

can be factored into determining the type and immediacy 

of the treatment. 
 18 Risk-Based Transportation Asset Management 19 

Analysis and evaluation of Risks 

analysis of risks involves identifying the possible likelihood 

of a risk or event occurring. the condition and performance 

of the high priority assets in the network or corridor, in 

conjunction with the responses can be useful in evaluating 

the severity of the risk. the following is a sample of some 

of the questions that may be used in the analysis: 

◗◗◗are there fracture-critical, non-redundant structures? 

◗◗◗Do the road segments have bridges that are prone 

to scour or hydrological events? 

◗◗◗are the road segments subject to seismic events? 

◗◗◗are there slopes or retaining wall failures possible 

in geologically unstable areas? 

◗◗◗are the traffic control devices and intelligent
 

transportation systems subject to regular
 

preventive maintenance to ensure functionality?
 

◗◗◗is there regular maintenance and inspection of tunnels, 

their lighting, ventilation and emergency notification 

systems? 

◗◗◗is the facility subject to flooding, storm surges, and 

severe winter storm events? 

Risks Due to Gradual Failure 

risks to assets may be caused by gradual failures or gradual 

degradation of asset performance. these can be caused 

by a lack of sound preservation practices, inadequate 

asset inventories, a lack of management systems or weak 

asset management policies to ensure sound long-term 

performance for the lowest possible lifecycle costs. 

examples of such risk include: 

Risk-Based Transportation Asset Management 

◗◗◗loss of pavement friction caused by aggregate polishing, flushing, rutting and resulting ponding of water; 

◗◗◗loss of lane delineation through degradation of lane 

markings; 

◗◗◗loss of functionality of key safety devices such as 

guardrail, crash attenuators and cable barrier through 

deterioration, such as guardrail post rotting, block 

deterioration, rust or crashes; 

◗◗◗Potholes and pavement rutting and cracking; 

◗◗◗Degradation of shoulders, leading to drop offs and 

roadway department crashes; 

◗◗◗loss of reflectivity or visibility of regulatory and
 

advisory signs;
 

◗◗◗Failure of drainage systems to remove water from 

roadway surfaces; 

◗◗◗Weakening of parapets from rust or concrete spalling; 

◗◗◗structures can pose a risk of lost structural integrity if 

key components such as expansion joints, bearings, 

rockers, and drainage devices are allowed to fail which 

accelerates bridge degradation; 

◗◗◗mechanically stabilized earth walls degrade if drainage 

erodes the internal structural fill; 

◗◗◗Failure to seal bridge decks risks loss of deck integrity; 

◗◗◗Poorly maintained components such as wing walls and 

riprap can risk the performance of a structure during 

storm events. 
 20 Risk-Based Transportation Asset Management 21 

Risks of Increased economic Cost 

risks to a network or corridor can also be considered from 

a perspective of sustaining it in fully functioning and good 

condition at the lowest possible life-cycle cost to preserve its 

long-term value. a sound pavement that is properly maintained has more value for society than a structurally poor 

pavement. a risk management perspective is to apply proactive preservation and maintenance strategies to sustain the 

performance and condition of the assets for the longest 

period economically possible. 

the rhode island Department of transportation struggled 

for more than a decade to reduce its high number of bridge 

deficiencies. it has replaced several high-value structures and 

has recently adopted its first bridge preservation program 

for its interstate Highway system bridges. While it would 

like to have a statewide preservation program, it has taken a 

risk-based approach to applying limited preservation funds 

to ensure the long-term value and performance of its most 

critical structures, those on its interstate highways. 

prioritization of environmental Considerations 

a network or corridor’s assets can be prioritized by their 

criticality to the successful functioning of the corridor 

or by additional social objectives important to the state. 

For instance, risks could be assessed by their likelihood 

of violating social or environmental requirements. 

examples include: 

◗◗◗adverse noise or localized air quality impacts on 

minority and low-income populations in violation 

of environmental justice objectives; 

◗◗◗Failure of retention and detention ponds that create 

excessive runoff that erode streams and water ways; 

Risk-Based Transportation Asset Management 

◗◗◗Failure of water quality best management practice 

devices that lead to increased “first flush” of roadway 

pollutants into water ways; 

◗◗◗Failure to maintain hydrology in created wetlands that 

violate environmental document or water-quality permit 

standards; 

◗◗◗Drainage practices that violate water-quality or habitat 

requirements; 

◗◗◗Failure to manage salt storage or garage facilities that 

lead to excess salt runoff or the improper runoff of 

controlled materials from maintenance facilities. 

in the advanced risk management practices of the highway 

agencies in Victoria, Queensland and new south Wales, 

australia, the risk of violating environmental requirements 

is viewed as a significant agency risk that is carefully monitored. likewise, for U.s. highway agencies whose facilities 

impact sensitive resources or populations, the identification 

of environmental or social risks can serve to highlight the 

agency’s sensitivity to sound stewardship. 

Treatment of Risks 

the final step in the risk-management process is the identification of how to treat the identified risks. the “five ts” of 

treat, tolerate, terminate, transfer or take advantage of, 

provide the menu of choices for each risk. 

the comprehensive evaluation of all risks allows the holistic 

mitigation of risks to the network or corridor, rather than the 

mitigation of risks to individual assets or groups of assets 

within them. While trade-offs may be made at the functional 

class level as described earlier, agencies may also decide to 

make trade-offs between assets within a corridor, so as to 

focus first on those assets that are most critical. this 

approach will facilitate a holistic approach to mitigation. 
Source: TAMC 2010 PASER Data Collection

 22 Risk-Based Transportation Asset Management 23 

examples of risk management 

of corridors 

agencies may choose to further prioritize networks by 

putting additional weight to certain especially important 

corridors within the networks. as they prioritize their routes 

that serve critical industries or supply chains, ones that are 

particularly important for emergency evacuations or which 

carry disproportionately large volumes, they may choose 

to place additional weight upon certain network links 

or corridors. 

Published data illustrating holistic risk management of 

corridors is limited. However, in addition to the examples 

illustrated previously, several more examples of risk management of corridors are available and have been included here. 

these examples illustrate how agencies have implemented 

formal plans that address several of the strategies discussed 

in this report. 

Risk Management in Michigan DoT 

Loss of Asset Value—A Risk Analysis 

a very important example of using asset inventories and 

management systems to help analyze and prevent risks 

to the transportation system can be seen in the analysis 

and reports provided by the michigan transportation 

asset management council (tamc), a legislated council 

with representatives from agencies responsible for 

managing or funding roads. the tamc coordinates the 

collection, analysis and reporting of data on asset conditions and investments to legislature and the state 

transportation commission. 

Figure 8 shows the tamc analysis of the 2010 Pavement 

condition on the Federal aid system. it indicates that a third 

2010 Pavement Condition (Federal Aid) 

FAIR

47%

GOOD

18%

POOR

35%

Figure 8. Pavement Condition on Federal Aid System. 

(soUrce: tamc 2010 Paser Data collection) 

Risk-Based Transportation Asset Management 

(over 20,810 lane miles) of the system is in poor condition. 

Figure 9 shows the trend of “poor” pavement conditions 

increasing over the years. the tamc report[vi] discussed this 

trend of increase in poor pavements as having a significant 

economic and financial impact. the report also urges action 

to ensure that this trend be reversed, as returning poor roads 

to good condition costs four to five times more than maintaining a road in fair condition. 

Discussing the lane miles in poor condition the report notes 

that the dramatic decline is resulting in need for structural 

improvements. From 2004 to 2010 the percent of lanes 

needing structural improvements has doubled to 34.8 percent. the tamc discussing the transportation funding crisis 

notes that the michigan’s transportation Fund’s (mtF) total 

gross revenue levels have declined as shown in Figure 10. 

Because of a reduction of $200 million in reduced gas tax 

revenues dedicated to roads and bridges over the last seven 

years, without additional funding, the system conditions will 

continue to decline. additionally, without state match, federal 

gas tax collected in michigan would be lost to other states. 

michigan Dot and the tamc are using the asset data, 

condition and analysis information to present the case of the 
Source: TAMC 2004–2010 PASER Data Collection

Cost of Returning All Lane Miles to Good Condition 

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

2004200520062007200820092010

COST (in millions) 

YEAR 

Figure 11. Cost of Returning All Lane Miles to Good Condition. 

(soUrce: mDot) 

2004–2010 Pavement Condition (Federal-Aid Eligible Roads) 

70%

200420052006200720082009201020042005200620072008200920102004200520062007200820092010

GOOD FAIR POOR

Figure 9. Pavement Condition Trends. (soUrce: mDot) 

60%

50%

40%

30%

20%

10%

0%

% OF LANE MILES 

 24 Risk-Based Transportation Asset Management Risk-Based Transportation Asset Management 25 

impending financial and economic risk that needs to be 

averted. the analysis in Figure 11 shows the cost of deterioration almost doubling from 2004 to 2010 and highlights the 

risk of loss in value of the road assets without immediate 

injection of funds to address system needs. in presenting this 

analysis, the tamc is emphasizing the impact of deterioration, and the need for funds and good asset management 

practices to help prevent the risk of such loss in value. 

2001–2011 MTF Total Gross Revenue 

2100

2050

2000

1950

1900

REVENUE (in millions)

20012002200320042005200620072008200920102011

YEAR 

Figure 10. MTF-Total Gross Revenue Level. (soUrce: mDot) 

1700

1750

1800

1850

Risk Management of I-94 Corridor 

over the last several years michigan Dot has been dealing 

with the insufficiency of funds to address degradation of 

aging transportation infrastructure assets. the agency 

continuously analyzes the degree and impact of risks to 

assets as it makes trade-off decisions. such trade-offs mean 

minimizing the risks to the more heavily traveled and highest 

priority roads. one such example can be seen in the risk 

management of the heavily traveled i-94 corridor. 
 26 Risk-Based Transportation Asset Management 27 

in september 2010, to manage the risk of safety and 

reliability in travel through the i-94 corridor and to promote 

economic vitality of the region, michigan Dot established 

the i-94 corridor operations partnership. the partnership 

also had the objective of coordinating activities to provide 

a high quality transportation system and travel experience. 

as part of this effort, the agency is investing approximately 

$51 million in Wayne and macomb counties to do resurfacing, repairs and other extensive improvements to bridges, 

overpasses, pavements, ramps and other roadway assets 

such as lighting. in addition, the agency is also implementing several operational strategies. 

Figure 12. Michigan DOT’s I-94 Corridor improvement projects. 

(soUrce: mDot) 

Risk-Based Transportation Asset Management 

the mDot goals for this corridor include: 

1. to improve work zone standards, implementation, and 

coordination so that customers’ experiences traveling 

through the corridor are consistent and reliable. 

2. improve work zone operations and manage delays so 

that customers’ needs for reliable and realistic travel 

times are achieved. 

3. improve customer communication—information to the 

motorists and feedback from them to ensure the motor

ing public has quality and timely information to guide 

their travel decisions and to ensure that mDot is accu

rately and consistently meeting or exceeding customers’ 

needs and expectations. 

managing risks to multiple assets and operations to ensure 

the safety and reliability of the corridor requires extensive 

planning. it also requires coordination among multiple state 

and local agencies. all project work on the corridor is closely 

coordinated and monitored. to ensure safety and reliability 

of travel on the corridor, travel delays are closely tracked 

and treatments are implemented to keep delays below the 

established corridor Delay threshold. other examples 

of risk management of the corridor include: 

◗◗◗Detailed procedures for lane closures; 

◗◗◗Providing minimum travel width (11 feet minimum) 

during construction on the corridor; 

◗◗◗Providing additional flexible or other delineators when 

paved shoulders (2-feet minimum) cannot be obtained. 

the agency also has strategies for maintenance of traffic on 

the corridor. Work zone operations, incident management 

and messaging in the corridor are managed actively. 

­

­
 28 Risk-Based Transportation Asset Management 29 

enhanced mile markers are installed throughout the corridor 

to improve incident identification and emergency response. 

By identifying the potential asset and operational risks, the 

agency has been able to successfully implement strategies 

to minimize delays and improve the safety and reliability of 

travel on the corridor. these strategies involve establishing 

allowable limits for travel time delays (ttD) through the i-94 

corridor within the state and then monitoring the ttDs over 

segments of the corridor by ensuring that the predicted 

delays (in a worst case scenario) are kept below the allowable limits. the ttDs are kept within allowable limits through 

a combination of revising (i) specific project implementation 

schedules and (ii) traffic maintenance strategies. 

Figure 13 shows the three segments of the i-94 corridor 

(each segment containing several projects), the allowable 

ttDs for each segment and the predicted ttDs for each segment. it is seen that while the predicted ttDs are well below 

the allowable limits for the first segment, the values in the 

Figure 13. Predicted and allowable TTDs for various segments 

of the Michigan I-94 Corridor. (soUrce: mDot) 

Risk-Based Transportation Asset Management 

second and third segments exceed the allowable limits for 

either peak or off-peak periods, necessitating an implementation of one or a combination of the strategies listed 

previously to keep the ttDs within allowable limits. 

this is one example of how the Dot applied risk-based management strategies to invest and manage the performance 

and condition of an important corridor segments on i-94. 

Risk Management in Florida DoT 

Risk Management of the Strategically Important 

I-95 Corridor 

in Florida, the i-95 corridor is considered a critical transportation facility, providing for the movement of people and 

goods along the east coast of Florida.[vii] Half of the 32 

Fortune 1000 companies in Florida are located along the i-95 

corridor. Hence managing the risks to this corridor is a high 

priority for the Dot. the i-95 corridor is part of the strategic 

intermodal system that serves facilities including major 

airports, intermodal freight-rail terminals, passenger 

terminals, seaports and a spaceport. 

the Florida House Bill 1021 required that the Dot, in consultation with several other agencies within whose jurisdictional areas the i-95 corridor lies, work to “complete a study of 

transportation alternatives for the travel corridor parallel to 

Interstate 95 which takes into account the transportation, 

emergency management, homeland security, and economic development needs of the state.” the study was to 

identify “cost-effective measures that may be implemented 

to alleviate congestion on interstate-95, facilitate emergency and security responses, and foster economic development.” also, the Florida administrative code requires the 

twelve i-95 corridor counties to develop a comprehensive 

emergency management Plan that implements a framework 

to deal with emergencies and disasters. 
 30 Risk-Based Transportation Asset Management 31 

the i-95 corridor is heavily used, so the impact of asset 

failures or other risks can be significant. law enforcement 

officers perform traffic enforcement along the entire corridor, 

monitoring speed and movement of trucks and other 

vehicles to minimize crashes and incidents. 

risk management for the Dot includes being prepared to 

address hazardous materials incidents and manage large 

volumes of traffic during emergencies. it requires that 

during emergencies, in the event that the i-95 corridor is 

damaged or impassable, alternate routes are available and 

usable. this means managing the performance and condition of these alternate routes throughout the year. the 2010, 

i-95 study of alternatives also illustrated that alternative 

transportation routes and modal choices need to be considered by 2035 to accommodate the growing demand. it 

states that “I-95 even at build-out, will not be operating at 

acceptable levels” and “parallel facilities may be facing a 

similar outlook.” 

as part of this process, Florida Dot is implementing many 

capacity improvements, lane management, developing or 

augmenting alternate routes and managing the current 

capacity innovatively. multiple studies have been completed 

and additional studies of various segments of the i-95 are 

currently in process. 

one of the strategies being used by the Dot involves 

innovative lower cost options such as converting two existing HoV lanes to two express lanes. this will extend the 95 

express from golden glades interchanges in miami-Dade 

county to Broward Boulevard in Broward county. Variable 

priced tolling that adjusts to congestion levels and encourages carpooling and travel during non-peak hours is used 

on 95-express. the construction will cost approximately 

$106 million and will include reconstruction of pavements, 

work on inside and outside shoulders, work at the ives Dairy 

Risk-Based Transportation Asset Management 

interchange, widening bridges, installing noise walls at 

specific locations and various its work. 

Various alternatives for approximately 13.5 miles of i-95 

between state road 816 (oakland Park Boulevard) in 

Broward county and state road 808 (glades road) in 

Palm Beach county are currently being studied. 

the i-95 project along the treasure coast, shown in Figure 14 

includes over $160 million dollars of projects that involved 

adding lanes in each direction, adding noise walls, widening 

bridges, milling and resurfacing existing pavements, upgrading multiple interchanges, reconstructing ramps, upgrading 

signals, minor widening and adding new lights throughout 

the corridor segment. 

the Florida Dot example illustrates the strategic approach 

taken by the Dot to identify, evaluate and develop plans to 

manage current and future risks to the i-95 corridor. this has 

resulted in the understanding that long-term risk management 

Figure 14. The I-95 Treasure Coast highway in Florida. 

(soUrce: google) 
 32 Risk-Based Transportation Asset Management 33 

will have to consider not just increasing the capacity of i-95 

where possible and those of parallel facilities, but also ensuring 

that alternative routes and other modal choices become 

readily available. 

Managing Risks Due to Hurricanes 

risk management of corridors and other heavily used roads 

in Florida include both operational and non-operational 

strategies. several risk mitigation strategies relating to 

roadway assets were used by the Florida Dot in 2004, when 

in a span of seven weeks, the state was hit by four hurricanes. the agency later studied its response to the events 

and refined the risk mitigation strategies used to minimize 

the impact of such events in the future. 

the risk mitigation included ensuring that the transportation 

assets are in good condition and do not fail during a natural 

event. it also included planning for mobilizing other assets 

and implementing operational strategies to minimize safety 

risks to the public. these strategies included suspending 

tolling and facilitating the exit and entry of traffic on toll 

roads, deploying portable message signs to clearly mark 

detour routes, having emergency contracts for repair and 

cleanup, deploying generators to every major intersection, 

redesigning the traffic signal control cabinets at intersections 

for generator connection, use of stop control where generator power is not available, use of light emitting diode signal 

heads and revising the wind speed criteria for critical signs 

and miscellaneous structures. 

Management Systems Aiding proactive Risk Management 

of High priority Assets 

Proactive management of risks to assets is one of the highest 

priorities in FDot. the Florida Dot uses an in-house management system called “Florida’s analysis system for targets” to track pavement conditions. the Dot uses over 35 

years of historical pavement condition data to predict future 

Risk-Based Transportation Asset Management 

pavement performance at a system level. Using available 

data, the agency analyzed and studied the impact and 

relationship of several variables including truck volume, 

average daily traffic, geographic location, asphalt thickness, 

and surface type to performance. Using the analysis, the 

agency determined the variables that had the greatest 

correlation to pavement performance and used it to develop 

reliable pavement deterioration models. statistical analysis 

revealed that the geographic district where the roadway was 

located, along with the surface type (open vs. dense) were 

the most reliable factors in predicting future pavement 

performance. there are separate graphs for open and dense 

graded pavements. the statewide performance is simply an 

aggregation of these graphs. By knowing the performance 

characteristics of each district, FDot can apply an expected 

performance curve to each individual roadway. 

Figure 15 (see next page) shows the pavement deterioration 

curves by district for cracks on dense graded surfaces. 

similar deteriorations curves are generated for open-grade 

surfaces as well for other factors such as smoothness and 

rutting. the predicted risk to the pavements based on the 

analysis enables the Dot to make financial decisions and to 

accurately allocate funds based on expected future needs. 

For example, if District 1 is projected to have 10% of the 

statewide deficiencies in 2016, it will be allocated 10% of the 

total statewide resurfacing monies for that year. the agency 

process takes three years to get from the point where a 

project is initially identified as a resurfacing candidate until it 

is let for construction. the process is detailed and all resurfacing greater than 1⁄2 mile in length goes through design and 

construction. the reason for this is that the agency views the 

resurfacing projects as the opportunity to systematically 

upgrade its corridors. the resurfacing projects involve not 

only making improvements to the roadway surface, they also 

upgrade the roadway geometry, operational characteristics, 

signing, signals, drainage, and safety. 
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 

60% 

65% 

70% 

75% 

80% 

85% 

90% 

95% 

100% 

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 

Scenario 1 

(Current—4.75% 2013, 5.5% 2014, 5.3% 2015, 5.5% thru 2018) 

Scenario 2 w/adjustment 

(4.75% 2013, 4% 2014-2015 Critical First, 4% 2016-2018) 

Statute 

Figure 16. Forecasted Scenarios of Pavement Performance 

(soUrce FDot). 

Plot of Predicted Crack Rating versus Age by District 

Figure 15. Predicted Crack Rating by District for Dense Graded 

Surfaces. (soUrce: FDot) 

 34 Risk-Based Transportation Asset Management 35 

in general, the agency uses resurfacing, rehabilitation and 

reconstruction (3r) projects to upgrade the entire corridor. 

these upgrades are not intended to meet new construction 

criteria, or to give a community all of the bells and whistles. 

the upgrades included are typically necessary to maintain 

what the agency considers to be the minimum level of safety 

and function. once a 3r project has touched a particular 

segment of roadway, there is a very good chance that FDot 

will not make significant improvements to that roadway 

again until the next 3r project comes along. the driving 

factor in when to perform one of these projects is the 

condition of the pavement. 

the agency has invested heavily in asset management and in 

collecting and managing its pavement condition data. the 

analysis of the historical data enables the agency to make 

funding decisions about pavement preservation activities 

Risk-Based Transportation Asset Management 

five years into the future. Because of the amount of engineering work that goes into a typical resurfacing project, the 

projects are actually identified and selected three years in 

advance and have a longer planning cycle than may be 

common in other Dots. 

Figure 16 shows how predicted future pavement performance is used to make funding decisions. the green line 

shows the Dots statutory requirement—to keep a minimum 

of 80% of the state’s pavements meeting the Department’s 

minimum standards. in may of 2012, over 90% of the state’s 

pavements met FDot’s minimum standards. the current 

policy (in may 2012), shown in blue, was to resurface 5.5% 

of the state’s highways annually. that policy was predicted 

to result in performance that would exceed 93% by 2020 

and remain at a level below 95% through 2035. the analysis 

indicated to the upper management that the Dot was 

over-preserving the system and the effort on resurfacing be 
Strategy: 

#3 

Grind 

#2 

Grind 

and/or 

DBR and 

Selective 

Reconst. 

Wait 

100 

Strategy 

Priority 

Condition Indexes 

Cannot do grind 

or DBR after 

this point 

MUST do 

reconstruction 

after this point 

for Total 

Reconst. 

Years 

#1 

#2 

#3 

#1 Total 

Reconst. 

(index 

< 25) 

0 

Figure-18. Risks of Catastrophic Failure for Concrete Pavements. 

(soUrce: WsDot) 

 

 36 Risk-Based Transportation Asset Management 37 

lowered a bit. this resulted in a decision to resurface 4.0% of 

the system annually through 2018, with a return to 5.5% in 

2019 (revised policy, shown in red). the agency is currently 

pursuing this revised policy that is projected to bring the 

system performance back below 85% by 2023. agency 

leadership reviews the risks to the performance and condition of the system regularly and re-evaluates strategies to 

make strategic decisions. 

Risk Management in Washington DoT 

Risk Management—A Routine Tool for efficient and 

effective Action 

Washington Dot (WsDot) is another Dot that is actively 

implementing risk-based asset management practices. With 

limited resources at their disposal agency personnel are 

focused on managing their risks “efficiently and effectively”. 

Figure 17, shows the agency’s tracking of the gas tax purchasing power declining over time. as one of the lead Dots 

implementing risk-based asset management, WsDot has 

Figure 17. Gas Tax purchasing power declines over time. 

(soUrce: WsDot). 

Risk-Based Transportation Asset Management 

been educating agency personnel, its policy makers and 

the public for many years on how decisions relating to one 

program or subprogram can affect those in other programs. 

With limited resources, investing more in one program would 

mean a reduction in others. this situation inherently requires 

the Dot to prioritize and manage risks across all programs 

effectively. With aging infrastructure, natural disasters and 

the need for economic growth vying for limited resources, 

risk-based decisions have become routine for the Dot. 

Decision Making to Minimize Risk of Catastrophic Failures 

to effectively manage its infrastructure assets with the 

limited funds available, WsDot tracks and forecasts potential risks to assets. Based on the classification, age, conditions, performance and projected risk to assets, the agency 

develops and implements various strategies. Figure 18 shows 

an example of the projected risk of catastrophic failure over 

Risk of Catastrophic Failure: 

Very Low Low Med. High 
 38 Risk-Based Transportation Asset Management 39 

the years for concrete pavements and the strategies that the 

agency deploys for the different levels of risks. the agency 

has also strategically used crack sealing and lower cost 

preservation options such as chip sealing on lower classification roads without compromising on asset performance. 

Managing Risks to High priority Corridors 

an example of the WsDot’s approach to managing risks to 

high priority corridors can be seen in the creation of “lifeline 

seismic routes”. WsDot has programs that cost effectively 

address seismic risks and risks relating to, scours, concrete 

deck, and other major repairs. to address seismic risks, 

WsDot, in collaboration with other state and federal agencies, is tracking “Peak ground acceleration contours” associated with earthquakes. With limited available funds and the 

resultant inability to address all seismic risks at one time, 

WsDot has created a lifeline set of routes that will provide 

emergency response in the highest ground motion acceleration zone (see Figure 19). Bridges on routes have been 

Figure-19. Lifeline Seismic Routes. (soUrce: WsDot) 

Risk-Based Transportation Asset Management 

categorized based on average Daily traffic. WsDot has 

detailed plans that consider route recovery time based on 

whether the bridge carried state route traffic, or carried 

traffic over the state route. the plan gives higher priority 

to bridges that carry state route traffic as against those that 

carry traffic over the state route. according to the WsDot’s 

seismic Prioritization Plan, 2013-2015, “WsDot’s disaster 

response plan includes provisions for receiving emergency 

supplies/personnel at Joint Base Lewis-McChord Air Force 

Base near Tacoma, Seattle International Airport and/or Paine 

Air Field in Everett, and transporting them throughout the 

region via the Lifeline Route on Interstate-5 and Interstate 

405. WsDot further divided the interstate routes into segments between major junction points in order to determine 

the cost to retrofit each segment and identify the most cost 

effective path between mcchord air Force Base and Paine 

Field. Thus, retrofitting Interstate-5 & Interstate 405 bridges 

between McChord Air Force Base and Paine Air Field is a 

top priority for the bridge seismic retrofit program.” 

Risk of Financial Loss and economic Impact Due to 

Natural Disasters 

Washington Dot also understands the financial risks and 

economic impacts that the loss or unavailability of infrastructure assets can have on the business in the state. the 

state of Washington has historically been experiencing other 

natural disasters such as floods and avalanches. these have 

led to closures of the i-5 and i-90 corridors within the state 

and caused moderate to severe impacts to businesses 

in the region as can be observed in Figures 20 and 21 

(see next page). 

to minimize future impacts from similar occurrences, the 

agency has established detailed risk management and mitigation strategies that are implemented during events. after 

such closures occur, the Dot studies the effectiveness of the 

strategies implemented with the intent to improve and refine 
 

How severely were companies impacted? 

Of the businesses impacted by the I-5 closure, 65 percent stated that the impacts 


were severe to moderate, while 45 percent of businesses impacted by the I-90 


closures made the same statement.
 

17.0% 

28.4% 

35.1% 

19.5% 

24.7% 

39.9% 

27.8% 

7.6% 

0% 

20% 

40% 

60% 

80% 

100% 

I-90 Winter Storm Closure (Jan. 29 – Feb. 2, 2008) 

I-5 Winter Storm Closure (Dec. 3 – Dec. 6, 2007) 

Severe Negative Moderate Negative Minor Negative No Negative 

Impact Impact Impact Impact 

Source: WSU/WSDOT Economic Impact Survey of I-5 and I-90 Winter Storm Closures; 2008. 

Figure 21. Severity of business impacts from 2007-2008 

winter storm closures on 1-5 and I-90. (soUrce: WsDot) 

What were the business impacts? 

Direct, Indirect, Induced, and Total Impacts on Economic Output Due 

to the I-5 and I-90 Winter Storm Closures 

$24.87 

$14.75 

$12.23 

$7.24 

$9.98 

$5.90 

$47.07 

$27.89 

$0 

$5 

$10 

$15 

$20 

$25 

$30 

$35 

$40 

$45 

$50 

I-5 Closure: Dec. 3 – 6, 2007 I-90 Closure: Jan. 29 – Feb. 2, 2008 

$Millions 

Direct Economic Impacts Indirect Impacts Induced Impacts Total Economic Impacts 

Figure 20. Business impacts from 1-5 and I-90 winter storm 

closures in the 2007-2008 season. (soUrce: WsDot) 

 40 Risk-Based Transportation Asset Management 41 

them. one such study was done after the closure of interstate 5, south of the Ports of seattle and tacoma, near chehalis, Washington in December 2007 due to flooding. several 

feet of water overtopped the interstate for five days and 

resulted in the stoppage of all passenger and freight movement. the flooding was caused by a series of significant 

weather systems that also closed all east-West corridors 

through the cascade mountains including the i-90 corridor in 

December 2007 due to heavy snowfall and avalanches. 

the agency developed a detailed detour plan that is implemented in the event that i-5 has to be closed because of rain, 

snow or other reasons. to address the closure of the eastern 

side of the state on i-90 in the vicinity of the snoqualmie 

Pass, the Dot identified a vision for additional lanes to be 

added, segments of the roadway to be moved away from the 

steep avalanche slopes and lengthening the area for vehicles 

to chain up. 

Risk-Based Transportation Asset Management 

additional risk management strategies identified as a result 

of this study included the need to provide safe parking to 

truck drivers stranded due to storms and other natural 

events. these drivers are mandatorily required to rest for 

10 hours after 11 hours of driving. this strategy ensures that 

when stranded drivers are unable to find parking, they do 

not park along shoulders and freeway ramps causing 

safety risks. 

WsDot is working with multiple agencies to develop a 

long-term vision for the i-90 corridor along a 15-mile stretch 

between Hyak and easton. the environmental impact 

statement that resulted from this effort outlines improvements needed to meet projected traffic demands, improve 
 42 Risk-Based Transportation Asset Management 43 

public safety, and meet identified project needs for this 

stretch of the i-90 corridor. 

WsDot anticipates that when all improvements are completed, travelers will experience a safer and more efficient sixlane freeway. closures resulting from avalanches and rock 

slides will be minimized and a new pavement designed to 

last 50 years will provide a smoother ride. Further, by installing new bridges and culverts, WsDot will reconnect wildlife 

habitat on both sides, thereby protecting both wildlife and 

the traveling public. 

While applying performance management to all its assets 

and operations, WsDot uses risk-based management approaches to identify the network locations that are below the 

performance goals established by the legislature. considering the risks, the agency then uses lower cost preservation 

and maintenance strategies to improve or maintain the 

performance of existing assets while still addressing congestion and economic development issues for which all lower 

cost alternatives have been exhausted. 

the Dot has a holistic corridor risk management plan that 

address critical asset condition and performance needs. 

these also address capacity and operational strategies that 

present risks to corridors. risk management has become 

a routine activity for WsDot. 

conclusions 

the national experience demonstrates that the risk-based 

asset management of transportation corridors can be a 

valuable tool for transportation agencies nationwide. it 

provides transportation agencies a mechanism to positively 

impact the safety, condition and performance of a larger 

number of assets and the traveling public in a strategic and 

holistic manner while enabling the optimal utilization of 

Risk-Based Transportation Asset Management 

increasingly limited resources. several conclusions can be 

drawn from this experience. these include: 

◗◗◗networks, corridors or segments of corridors primarily 

involve prioritized functional classes of assets such as 

the national Highway system or heavily used roads 

that serve a majority of the traveling public nationwide. 

they also involve other critical transportation assets, 

such as, evacuation routes, non-redundant access 

routes, connectivity to defense facilities or other 

important assets critical to national security or connections between economic hubs within a region. risk 

management of such a grouping of assets allows 

transportation agencies a means to facilitate the 

improvement of safety, condition and service level of 

a larger number of assets in a manner that maximizes 

the positive impact to users. 

◗◗◗risk management of networks and corridors provides an 

opportunity to implement the strategic best use of 

resources, thus maximizing the outcome from limited 

resources in tough economic times. in the current difficult global economic climate, governments and Dots are 

reeling under the burden of ageing infrastructure and 

ballooning operational service level requirements. these 

necessitate increasing amounts of investments to meet 

the safety needs and expectations of the traveling public 

and various stakeholders including businesses. at the 

same time, agencies are being challenged by declining 

tax revenues. this imbalance has forced governments 

and agencies to find creative solutions to optimize the 

use of resources. risk management at the corridor level 

expands the logic to apply to a larger and more critical 

grouping of assets and thus provides one means to 

receive “the biggest bang for the buck”. 

◗◗◗When optimizing with limited resources, transportation 

agencies will need to make trade-offs. making trade­
 44 Risk-Based Transportation Asset Management 45 

offs can result in having to accept lower performance 

levels on lesser-used assets. However, transportation 

agencies are keen to ensure this does not mean a 

universal reduction in performance standards to unacceptable levels. instead it can represent a risk-based 

shifting of priorities, whereby the lesser used assets still 

maintain an acceptable, though lower, level of service 

while the condition and performance of major networks 

and corridors are preserved. 

◗◗◗a formalized process for the risk management of 

assets at the corridor level allows transportation agencies to communicate to the public, policy makers and 

other stakeholders that the strategies being implemented by them represent a well-thought out and 

methodical approach to decision-making and demonstrate that they are responsible stewards of the 

region’s transportation assets. 

Risk-Based Transportation Asset Management 

eNDNoTeS 

i

U.s. army corps of engineers U.s. Waterborne container traffic by 

Port/Waterway in 2007 

iiFHWa Freight Facts and Figures, tables 2-1 and 2-1m. Weight of 

shipments by transportation mode: 2007, 2010, and 2040, 

accessed at http://www.ops.fhwa.dot.gov/freight/freight_analysis/nat_freight_stats/docs/11factsfigures/table2_1.htm, nov. 12, 

2012 

iiiFHWa, Freight operations and management, the Freight story 

2008, accessed at http://ops.fhwa.dot.gov/freight/freight_analysis/freight_story/costs.htm 

ivthe Freight story, FHWa, accessed http://ops.fhwa.dot.gov/ 

freight/freight_analysis/freight_story/demands.htm 

vhttp://ops.fhwa.dot.gov/freight/publications/fhwaop03004/ 

congest.htm 

vitransportation asset management council, “michigan roads and 

Bridges 2010 annual report” 

viii-95 transportation alternatives study, dated June 2010 
 46 Risk-Based Transportation Asset Management 

Additional information is available from the following: 

Nastaran Saadatmand 

asset management Program manager 

office of asset management 

Federal Highway administration 

1200 new Jersey avenue, se 

Washington, Dc, 20590 

(202) 366-1337 

nastaran.saadatmand@dot.gov 

or 

Stephen Gaj 

leader, system management & monitoring team 

office of asset management 

Federal Highway administration 

1200 new Jersey avenue, se 

Washington, Dc 20590 

(202) 366-1336 

stephen.gaj@dot.gov 

Prepared by: 

shobna Varma
 

starisis corporation
 

in association with:
 

gordon Proctor
 

gordon Proctor & associates, inc.
 

office of asset management 

Federal Highway administration 

1200 new Jersey avenue, se 

Washington, Dc 20590 

FHWA-HIF-13-017