These Guidelines are intended to be a step-by-step “How to do it” guide to assessing the economics of flood risk management (FRM) in relation to deciding the standard of protection to be required of any intervention to reduce flood risk and the standards of safety against flooding thereby provided.
When put together with knowledge of the costs of the plans and schemes required in that risk management, the user can assess the relationship between the benefits and the cost of investment decisions. This comparison should enable the users to identify those risk management plans and schemes which maximise the economic return to their nation and therefore represent “best value for money” by being economically efficient. At the same time they can decide the standard of protection (SOP) to be provided by that intervention, which in turn determines the degree of safety against flood risk that is provided.
These Guidelines are designed to complement the guidelines produced in the previous FLOOD CBA project and report (see Appendix 31). There is no intention to repeat that material here (see Appendix 1) but concentrate on the relationship between benefit cost analysis (and the design standards of flood risk management schemes), and the safety considerations inherent in choosing a particular design standard over another. Thus whilst these guidelines offer a step-by-step guide, they are not a stand-alone document but should be consulted in conjunction with the FLOOD CBA guidelines referenced above.