How do you manage risk in transit-oriented design?

1 Financial risk

One of the main risks of TOD is the uncertainty and complexity of the financial aspects of the project, such as land acquisition, development costs, funding sources, and revenue streams. TOD projects often require collaboration and coordination among multiple public and private stakeholders, which can create challenges in securing and managing the financial resources. To manage this risk, you need to conduct a thorough feasibility analysis, establish clear and realistic goals and expectations, and create a flexible and transparent financial plan that can adapt to changing market conditions and stakeholder needs.

2 Environmental risk

Another risk of TOD is the potential impact on the natural environment, such as soil contamination, water pollution, noise, and air quality. TOD projects may involve the redevelopment of brownfields or other sites that have environmental issues that need to be addressed. TOD projects may also generate increased demand for water, energy, and waste management services, which can strain the existing infrastructure and resources. To manage this risk, you need to conduct a comprehensive environmental assessment, comply with all relevant regulations and standards, and implement sustainable design and construction practices that minimize the environmental footprint of the project.

3 Social risk

A third risk of TOD is the possible effect on the social fabric of the community, such as displacement, gentrification, diversity, and accessibility. TOD projects may create or exacerbate social inequalities or conflicts by displacing low-income or marginalized residents, increasing housing prices or rents, reducing the availability or affordability of public services, or creating barriers or exclusions for certain groups or individuals. To manage this risk, you need to engage with the community and stakeholders, conduct a social impact analysis, and incorporate social justice and equity principles into the project design and implementation.

4 Operational risk

A final risk of TOD is the uncertainty and variability of the operational performance of the project, such as ridership, service quality, safety, and maintenance. TOD projects depend on the reliability and efficiency of the public transportation system, which can be affected by various factors, such as weather, accidents, disruptions, or changes in demand or supply. TOD projects also need to ensure the safety and security of the users and residents, as well as the durability and functionality of the facilities and infrastructure. To manage this risk, you need to monitor and evaluate the operational outcomes, implement contingency and emergency plans, and adopt best practices and standards for operation and maintenance.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?