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1Enterprise Risk Management PlanFY 2022Submitted: September 2021

2Enterprise Risk Management Plan, FY 2022IntroductionEnterprise Risk Management (ERM) at the Texas A&M Transportation Institute (TTI) identifies, monitors and mitigates risks that threaten theachievement of TTI’s Strategic Plan and/or the continuing operation of the Institute’s research program. TTI is committed to the managementof risk in order to protect: the safety and well-being of our employees; our research sponsors and other key stakeholders; the quality of research and service provided by the Institute; our assets, including intellectual property; our contractual and statutory obligations; our image and reputation; and our commitment to The Texas A&M University System, state government and the people of Texas.For each risk the Institute faces, TTI has assessed the likelihood and potential consequences of an adverse event and has prioritized each categoryof risk according to the level of threat facing the Institute. TTI leadership has determined strategies for managing risks, devoting the greatestresources to the risks considered to present a high-high, high-medium or medium-medium threat. TTI’s Risk Register lists these primary risksthat impact the Institute. TTI’s Risk Matrix lists risk management strategies to mitigate and monitor these primary risks.In addition, the TTI Executive Team monitors several low-low risks on an on-going basis: failure to meet regulatory financial obligations and implement efficient financial practices failure to maintain a strong, robust, Environmental Health and Safety (EHS) program; failure to maintain a well-defined and diverse Ethics and Compliance program; failure to make effective, strategic use of flexible funding sources; and problems or security issues with information technology systems.The Institute’s objective is to adopt best business practices in managing risks. TTI’s Enterprise Risk Management program is a continuousprocess, requiring awareness and proactive measures by all agency employees to identify and reduce the occurrence and impact of risks.

3FY 2022 Risk RegisterLikelihood ofOccurrenceHighConsequence of OccurrenceConsequence of OccurrenceHighMedium Failure to implement new strategic plan and educatethe workforce on the initiatives. Failure to foster an inclusive, modern, dynamic workculture. Failure to develop, recruit and retain the bestprofessional talent. Failure to produce high-quality innovative, forwardlooking research. Failure to maintain and enhance our brand as thepremier transportation research institute.MediumFailure to continually improve and customizeour business process.

Texas A&M University SystemOffice of Risk ManagementTexas A&M Transportation Institute Enterprise Risk Management PlanFY 2022 Risk MatrixDescription of RiskFailure to implementnew strategic plan andeducate the workforceon the initiatives.LikelihoodHighImpactHighMitigation and ControlMechanismsTTI employees representingdiverse agency functions willserve on strategic planimplementation efforts.The TTI strategic advisor willprovide opportunities fortraining, education, andoutreach to the workforce.A section of the internal TTIwebsite will be dedicated tothe strategic plan process.The Strategic FacilitationGroup will oversee theimplementation of thestrategic plan.Monitoring ActivitiesThe strategic advisor willmeet with leadership andsubject matter experts on aregular basis to ensuretransparency during thecreation and implementationphases.Conduct face-to-face andgroup meetings withworkforce throughoutimplementation.Co-champions will lead theimplementation of thevarious strategies.Reporting MechanismThe strategic advisor willprovide regular updates tothe LITC concerningcompletion dates, trainings,and implementation.Q&As are held by AgencyDirector to give updates toworkforce.

Texas A&M University SystemOffice of Risk ManagementTexas A&M Transportation Institute Enterprise Risk Management PlanFY 2022 Risk MatrixDescription of RiskFailure to develop, recruit andretain the best ation and ControlMechanismsProvide clear career paths andjob expectations for all levels andskillsets.Adjust employee compensationstructure to reflect currentperformance and marketstandards.Provide opportunities forworkforce to participate inprofessional development andleadership programs.Pursue workforce developmentand strategic hires.Develop and implement acommunication strategy toengage all agency employees oncareer paths and compensation.Monitoring ActivitiesReporting MechanismMonitor success of strategichires.Strategic hires are evaluatedannually by their supervisor.Create a career and developmentwebpage.Annual reminder is sent TTIworkforce directing them tothe career and developmentwebpage for questionsconcerning TTI positions andcareer tracks.Director of Human Resources(HR) evaluates participation inTTI’s Professional DevelopmentPrograms.HR department will developcompensation guidelines that aremarket driven, skill based, andaccount for performance and jobexperience.Division Heads meet regularlyto discuss opportunities forperformance improvement,program growth and initiatives.Implementation ideas areshared with LITC as needed.Director of HR producesreports as needed on employeecompensation and retentiondata and shares withleadership.

Texas A&M University SystemOffice of Risk ManagementTexas A&M Transportation Institute Enterprise Risk Management PlanFY 2022 Risk MatrixDescription of RiskFailure to foster an inclusive,modern, dynamic work culture.LikelihoodImpactHighHighMitigation and ControlMechanismsCreate a culture of teamwork andcollaboration betweenresearchers and operationsservices.Foster an awareness of equity,inclusion, and professionalism forall staff.Establish transparency in alllevels of decision-making.Establish an ombuds office.Hire an outside consultant todevelop a Diversity, Equity andInclusion program.Monitoring ActivitiesInterview and engage TTIemployees to identify how tocontinually improved theagency’s capacity to workcohesively as a team.Develop surveys to gather dataon issues, opportunities, andgaps in knowledge.Implement consistentinformation sharing efforts(brown bag lunches, seminars,etc.)Semi- annual meetings of allprogram managers will be held.Consider developing andimplementing an internalcommunications strategy thatwill engage all staff.Reporting MechanismFindings from interviews andsurveys will be reported to theET, LITC and workforce.Information concerning dataand opportunities will beshared with the workforce viaInside Lane and agency wideemails.Q&As are held by the AgencyDirector quarterly to giveupdates.Ombuds personnel willpresent statistics to LITCannually while maintainingconfidentiality.

Texas A&M University SystemOffice of Risk ManagementTexas A&M Transportation Institute Enterprise Risk Management PlanFY 2022 Risk MatrixDescription of RiskFailure to continually improveand customize our gation and ControlMechanismsReevaluate organizationalstructure to promotecollaboration and reducesiloing.Hire consultant to investigatealternative organizationalstructure and encourage crosscollaboration.Identify solutions for mitigatingthe burden on staff for “nonbillable time” such asproposal/grant applicationsand professional development.Monitoring ActivitiesReporting MechanismEngage stakeholder group tomonitor internal issues andprovide recommendations.CFO produces reports asneeded on the use and statusof TTI institutional funds.Conduct ongoing programmaticreviews of TTI researchprograms.Q&As are held by the AgencyDirector to give updates onchanges at TTI.Research and Operations DivisionHeads meet periodically tocollaborate on strategic fundingopportunities.Chief Financial Officer (CFO)reviews flexible funding sourcesto ensure they are usedstrategically.

Texas A&M University SystemOffice of Risk ManagementTexas A&M Transportation Institute Enterprise Risk Management PlanFY 2022 Risk MatrixDescription of RiskFailure to maintain andenhance our brand as thepremier transportationresearch institute.LikelihoodImpactMediumHighMitigation and ControlMechanismsDevelop a comprehensivemarketing strategy tocommunicate and publicize TTIproducts, services, innovations,and people.Produce deliverables that moreeffectively convey researchfindings to a broad set ofaudiences.Monitoring ActivitiesProduce updated branding andcommunication tools to be usedagency wide.Conduct a brown bag series toshare innovative deliverablesacross TTI.Develop training for staff to usein becoming TTI ambassadors.Director of Communicationsupdates LITC on marketingtools and opportunities.Develop research summarytemplates for broad agency use.Review and update the showcaseto include keywords andIdentify TTI’s target market,brand promise and key messages. marketing tools.Evolve products from traditionalresearch reports to incorporatemore dynamic and innovativeformats.Create a web-based “showcase”of innovative products.Reporting Mechanism

Texas A&M University SystemOffice of Risk ManagementTexas A&M Transportation Institute Enterprise Risk Management PlanFY 2022 Risk MatrixDescription of RiskFailure to continue toproduce high-qualityinnovative, Mitigation and ControlMechanismsMonitoring ActivitiesReporting MechanismIdentify and cultivate new andnon-traditional sponsors andresearch opportunities.Reward TTI staff who reachfinancial incentive goals inpursuing non-traditional funding.Maintain the financial incentiveprogram to encourage TTI staffto pursue non-traditionalfunding.Conduct ongoing programmaticreviews of TTI researchprograms.LITC reviews researchexpenditure reports andmakes necessary adjustmentsin research priorities.Provide agency resources topursue strategic partnershipopportunities.Streamline and improve theproposal writing process to easeburden of proposaldevelopment for staff.Create a coaching andmentorship program forproposal development.Conduct “Proposal Development101” course.Identify and share best practiceson proposal development basedon recent successes.LITC evaluates thesustainability of existingresearch programs andinitiates the creation of newprograms as necessary.CFO produces reports asneeded on the use and statusof TTI institutional funds toidentify coverage options forresearchers in relation toproposal development.

Enterprise Risk Management (ERM) at the Texas A&M Transportation Institute (TTI) identifies, monitors and mitigates risks that threaten the achievement of TTI's Strategic Plan and/or the continuing operation of the Institute's research program. TTI is committed to the management of risk in order to protect: