**7. Risk-informed resource allocation of transportation agencies**

Resource Allocation is a key component of Transportation Asset Management (TAM) [22]. This chapter primarily focuses on emphasizing the importance of risk management in transportation networks and demonstrating the relationship between environmentally influenced risk management and sustainable management of state-controlled transportation assets in the United States.

The American Association of State Highway and Transportation Officials (AASHTO) developed a transportation asset management guide that describes essential components for resource allocation and prioritization process, cross-asset resource allocation methods, TAM financial plans, and work planning and delivery. Chapter 5 of the AASHTO Guide describes the resource allocation process and provides guidance on implementing a resource allocation process that makes the best use of asset data and systems to allocate scarce resources in a timely manner in support of TAM-related goals and objectives [23].

The AASHTO Guide includes several examples where it specifically stated that an organization may identify through its risk management approach areas where better data or improved processes are needed to best address a given risk, in turn impacting the resource allocation process. For instance, if uncertainty concerning future asset conditions is found to be a significant risk, this may result in efforts to improve the deterioration models in an agency's asset management systems and/or motivate data collection improvements to reduce uncertainty.
