Risk Assessment and Allocation for Highway Construction Management

Risk Management Matrix - High Probability, High Impact

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Figure 4. Diagram of the Caltrans risk management process. First, the type of environmental document expected is determined. If the project has a categorical exemption or exclusion, a risk management plan is optional. If the project has an environmental document, such as nondetect, finding of no significant impact, environmental impact statement, or environmental investigation report, it undergoes a risk management process. In step 1, risk management planning, the project development team is established. In step 2, risk identification, the project development team identifies risks and creates a project risk list. In step 3, qualitative analysis, the project development team conducts an assessment. If a value analysis is required, the team goes to step 4, quantitative risk analysis. If a value analysis is not required, the team goes directly to step 5, risk response plan. For each identified risk, the project development team decides whether to avoid, mitigate, or accept the risk. Step 6, risk monitoring and control, is an ongoing process for the life of the projects in which assigned team members monitor the risks as the project matures, new risks develop, or anticipated risks disappear.

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