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The US Army Corps of Engineers (USACE) operates, maintains, and manages more than $232 billion worth of the Nation’s water resource infrastructure. Using the Operational Condition Assessment (OCA) system, the USACE allocates limited resources to assess conditions and maintain assets in efforts to minimize risks associated with asset performance degradation. Currently, OCAs are conducted on each component within a facility every 5 years, regardless of the component’s risk contribution. The analysis of risks associated with Flood Risk Management (FRM) facilities, such as dams, includes considering how the facility contributes to its associated FRM watershed system, understanding the consequences of degradation in the facility’s performance, and calculating the likelihood that the facility will perform as expected given the current OCA condition ratings of critical components. This research will develop a scalable methodology to model the probability of failure of components and systems that contribute to the performance of facilities in their respective FRM systems combined with consequences derived from hydrological models of the watershed to develop facility risk scores. This interim report documents the results of the first phase of this effort, stakeholder analysis and literature review, to identify candidate approaches to determine the probability of failure of a facility.