Transportation Strategic Enterprise

Resilience for Facing Climate

Change

TRB Webinar:

Economic and Financial Dimensions to a Climate Resilient Transportation Infrastructure

Silvana V Croope, Ph.D., ENV SP

DelDOT – Delaware Department of Transportation May 12, 2016

Building Blocks

• Planning Levels

• Daily activities and integration to resilience

▫ Economic and Financial Resilience

• Enterprise Risk/Resilience Management

• Supporting Policy(ies)

▫ DelDOT example

Planning Levels Plans, Planning, Projects, Implementation, Management

• Strategic

• Tactic

• Operational

• Long-Term

• Short-Term

• World Economic Forum: Global Risks 2015, 10th Edition http://www3.weforum.org/docs/WEF_Global_Risks_2015_Report15.pdf

• Summary of the Border Infrastructure Finance Workshop - https://www.borderplanning.fhwa.dot.gov/documents/JWC_Meetings/Jan2016_SanDiego_JWC_Summary.asp

• Integrating Security into the Project Planning and Development Process https://www.planning.dot.gov/documents/Integrating_Security_into_Project_Planning.pdf

• Governor Markell’s Transportation Investments for Delaware’s Future http://governor.delaware.gov/docs/COTPresentation02-12-14.pdf

Daily Activities and Integration to Resilience

Economic Resilience

• Impact on welfare and ability to cope, recover, reconstruct, minimize consumption losses - macroeconomic resilience: instant or dynamic

(Stephane Hallegatte, The World Bank, May 2014)

Daily Activities and Integration to Resilience

Financial Resilience (Revenue Resilience???)

• Financial diversity (e.g. bit coin, miles, credits, currency …)

• Disruptive thinking /technology (protect/grow revenue VS budget constraint, green energy, …)

• Investment to maintain business continuity and competitiveness

• Different revenue types and certainty

• Financial System Resilience Index

• COST RESILIENCE

System’s interdependencies: economy part of social

system with ecological limits

Efforts to

reduce debt

Cost of disasters mining

efforts to reduce

debt

A Framework for Financial

Resilience

Potential Indicators Modified from:

New Economics Foundation

http://b.3cdn.net/nefoundation/70470851bfaddff2a2_xem6ix4qg.pdf

Transportation Sector Financial

Portfolio and Strategies ???

Enterprise Management Risk

Old Paradigm New Paradigm Catastrophic Impacts

- Historical base

- Ad hoc activity

- Silo/fragmented

- Financial risk

- Verify/inspect, identify/detect and react

- Focused on people

- Strategic (vision)

- Continuity of activities

- Entire management

- Holistic (both focused and with coordination)

- Risks for business

- “ forecast/anticipate, prevent and monitor

- Focus is expanded to people and processes

- All Hazards

- Technological

- Physical

- Functional

- Economic

- Financial

- Resources

- Knowns

- Unknowns

- Complex ...

Modified from “The Economist Intelligence Unit, Manageing Business Risk, pp.10

Enterprise Management

Resilience

• Self Insurance vs Insured

▫ Catastrophe VS disasters

• Transportation Assets

• Multidimensional perspective

• Multidisciplinary perspective

• Complex dynamic interconnected world

• …

Policy Support

International

National

Regional Sub-Regional

P3

Local, Tribal, Territorial

DelDOT

Climate Change, Resilience and Sustainability Team

Design: Karen Brittingham, 2015

Transportation Resilience Performace Towards Sustainability – With Growth

“Creation”/

Construction

Improved Infrastructure

Behavior Pattern

Minimum Acceptable Performance

Service Life: construction, maintenance, rehabilitation Disruption

Loss of Capacity (compromised service demand)

Growth capacity adjustment

Increased Resilience Increased

Capacity Construction

Minimum Disruption, Increased Resilience (lessons learned)

Desired Sustainable

System Balance

Loss of capacity through time (lower performance level and

trigger for maintenance, repair, rehabilitation)

Levels of Investments and Revenues Needed

Silvana Croope, 2015

DelDOT The Opportunities

• Notice of Opportunities – funding

• Incorporation to daily activities

• None-traditional venues

• Increased P3

• Collaboration more than competition?

• FHWA Vulnerability Assessment Inclusion of Econ/Finance dimensions

• Suggest DHS/NIPP

include Econ/Finance dimensions

• …

Thank you!

“When organizational leaders fail to anticipate or plan for multiple goal-seeking,

the clash of individual versus organizational goals

causes much conflict and lost productivity for all concerned, …

creating a lose-lose situation, …

dehumanization, delayering, and mechanization of work … alienating many of today’s workers.”

Strategic and Systems Thinking: The Science of System Thinking. S. Haines, 2007.