Section 6: Risk Assessment
Conducting risk assessments helps ensure that potential risks are identified and appropriate monitoring is established to mitigate those risks. If the identified risks are significant, the Federal awarding agency or State DOT can impose specific conditions under 2 CFR 200.207 any specific conditions must be notified to the applicant in advance as to: 1.) the nature of the additional requirements; 2.) the reason why the additional requirements are being imposed; 3.) the nature of the action needed to remove the additional requirement, if applicable; 4.) the time allowed for completing the actions, if applicable, and 5.) the method for requesting reconsideration of the additional requirements imposed.
Any specific conditions must be promptly removed once the conditions that prompted them have been corrected.
When a proposal is received from a university, the first level of risk evaluation is to see if the primary researcher is eligible to submit a proposal. The primary researcher may be disqualified for late or untimely submission of deliverables. This initial review ensures that the project has a higher chance for success.
A general risk assessment is administered by reviewing management standards, history of performance, ability to apply statutory and regulatory requirements. In addition, all attempts are made to comply with the federal guidelines on government wide suspension and debarment.