I started in K-Mart Corporation's loss-prevention operation when I was 19, where I reported a variety of claims to the insurance carrier. When K-Mart decided to self-insure, they asked me to head the pilot of their Western group. Before I left the company, I oversaw claims in 14 Western areas, including Puerto Rico and Guam.

I then went to Underground Technology Inc., which was an underground utility-locating company with very high risk potential: low-skill workers, high danger in the construction areas, and working with cables that sometimes intersected with utility and gas lines that weren't shown on blueprints.

I have been within OCTA risk department since 1997, and its chief risk officer since 2005. My private-industry background assisted OCTA because even though they're a public entity, they have an entrepreneurial approach to their work.

Can you give an example of OCTA taking that “entrepreneurial approach”?

The OCTA serves as a funding source for large capital projects, such as freeway construction. The state allocates funds to certain counties, but the county transit authority is usually the funding and distribution source for any transportation projects. Sometimes it's as simple as [providing funding] to Cal-Trans for them to do the job. By State law, CalTrans is the sole agency responsible for the maintenance and operation of California freeways.

Due to some constraints that prohibited CalTrans from using a much more efficient design/build approach for freeway construction, OCTA sought and received authority to temporarily assume the responsibility for the maintenance and operation of the 22 Freeway in Orange County. In doing so, OCTA, without similar constraints, was able to employ the design/build approach that made it easier to start and finish the needed construction project years ahead of what CalTrans would have been able to do using the traditional design/bid/build approach. This saved taxpayer money, shortened the construction period and provided the public with improved traffic flow on the 22 freeway.

What are OCTA's primary risks?

The biggest, right off the bat, are political and/or reputational risk. We are stewards of taxpayer funds, so if we should fail to use that money in an efficient way, we may lose the opportunity to get federal or state funds in the future.

What about the more uncommon risks that people would not expect to fall under your purview?

Although we contractually transfer the risk on our large-capital projects, our name still goes on them. Literally, it's on all the construction signs, so reputational risk is big for us. Another important risk is Cyber from the toll road that we own. Although operated by a consultant, we have to be very careful about our liability because many customers use transponders that automatically deduct money from their accounts. We have to keep all of that financial information secure. 

Does OCTA subscribe to an ERM approach, or mostly deal with insurable liabilities?

OCTA is slowly moving in [an ERM] direction. There are many areas of expertise in public agencies, and it makes sense to bring them together to look at risk in a global way. We're not there yet, but most risk managers would say they are always trying to improve their program in that way, along with a move toward strategic risk management.

Is pollution control, or climate change, part of your view of mass-transportation risks?

Absolutely. We promote biking by creating separate bike lanes and piloting a bike-sharing program, but we also use alternative-fuel vehicles including liquefied natural gas, compressed natural gas and hybrid fleet vehicles. We are also trying to simplify goods movement: Long Beach is one of the main centers of goods transport to the middle of the country, so we coordinate with the port, the freeways and public transportation make sure those diesel trucks aren't sitting in traffic.

Is population growth a challenge for OCTA?

It's not necessarily population growth; it's population distribution. The city of Santa Ana is the most densely populated city in Orange County. [In terms of public transportation], what do you do for places with lower populations such as Irvine or San Clemente, away from the center of the county but less populated? You have to maintain a regular bus schedule; meanwhile, you're getting public criticism for buses that are driving around at high cost with no passengers visible on them. But you can't take those buses away from the people who need them.

How are you staying ahead of that challenge?

We've used our scheduling group to put most of our operations in Garden Grove and Anaheim in the center of the county. Some of the cities are also implementing small trolley services, which we support. We want to keep people moving.