President Trump's infrastructure plan, while one of the largest proposed, continues with the theme of the prior three administrations in calling for massive investment in the nation's infrastructure. The plan aims to generate $1.5 trillion in order to upgrade the nation's highways, airports and railroads.
Details related to the infrastructure plan will certainly change as the proposal moves through the political process. Despite that uncertainty, there are projects currently underway, projects in planning phases and, more importantly, projects that need attention — many of which fall under the category of critical infrastructure. It's no secret that much of our country's infrastructure is long overdue for an overhaul, and it will be no small task determining how best to allocate resources on a federal, state, and local level.
Should a city prioritize fixing aging water distribution systems or outdated traffic control equipment? Should a state invest in repairing an unsafe bridge or updating an old section of a frequently used highway? Although there are countless projects that need attention, local governments first and foremost must fulfill their mission of serving their citizens and keeping them safe, and all infrastructure projects should be evaluated through a programmatic and strategic lens.
Related: 2018's 10 best states to drive in
|Understanding the infrastructure ecosystem
Regardless of what priority an infrastructure project is assigned, each project should be approached and viewed through a programmatic lens. It's important to assess where a project fits within a larger infrastructure ecosystem:
- Is this project a piece of a much larger puzzle?
- If it is, at what point in the infrastructure roadmap can it be most effectively dealt with?
Next, the various types of risks associated with each project should be considered:
- Does this project have a financial, reputational or operational risk?
- Is there potential for a positive or negative risk outcome?
Like any strategic and programmatic plan, sound review, prioritization and financial strategy are essential to a successful and safe project.
Related: 2018's 10 worst states to drive in
|Looking to the future for today's needs
Tactically, it's easy to prioritize fixing what's already broken or posing an immediate danger, for example, a traffic signal damaged in a storm or a burst water main will naturally shoot to the top of the priority list. Strategically however, is the town considering future overhaul of traffic control to a smart management system? Does the utility need to upgrade its supervisory control and data acquisition (SCADA) network?
Developing a plan that can address long-term infrastructure improvements needed both now and in the future while delivering such improvements in such a way that addresses lessons learned from past projects is the most arduous task for infrastructure planners.
A smart and programmatic strategy acknowledges that it's not enough to simply repair or replace compromised systems. Infrastructure planners and experts need to look at past examples of successes and failures while also considering future use cases, new technologies and solutions that can impact today's strategies. Every infrastructure plan should strive to create solutions in a way that considers the future and enhances projects with the latest technology in order to make final outcomes safer, last longer and more economically viable over time.
Related: Gulf Coast needs $14 billion storm barrier, chemical makers say
|Opportunity for risk management
From an insurance and risk management perspective, observing projects from a programmatic lens all ties back to making infrastructure projects safer and ultimately reducing the frequency of repairs and making projects less susceptible to catastrophic loss. By implementing an infrastructure plan that exists within an overall enterprise risk management strategy, cities and towns can focus on providing services safely to their citizens, while infrastructure projects are underway.
Thom Rickert is VP and Emerging Risks Specialist for Trident Public Risk Solutions, member of Argo Group. He can be reached at [email protected].
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