Measuring flood protection benefits

Making the case for pre-event disaster risk reduction

Large-scale flood disasters in recent years vividly demonstrate the need to invest in risk reduction measures before such events happen. It can be difficult, however, for a community to decide to invest in such measures, as these decisions usually involve several options and multiple stakeholders with different short- and long-term objectives and priorities. As a result, intense discussions often produce little real progress, or there is simply a return to the status quo.

A variety of decision-support tools are available to organize and evaluate options, which can assist in making the case for pre-event risk reduction to flooding and other hazards. Among these tools, the most widely-used for assessing flood risk reduction measures is cost-benefit analysis (CBA). Other tools that can be used to aid decision making include cost-effectiveness analysis (CEA), multi-criteria analysis (MCA) and robust decision-making approaches (RDMA).

In this issue brief we outline three key findings that provide information for research, policy, and implementing decisions on reducing flood risk. The analysis provides a foundation for work under the Zurich flood resilience alliance, allowing it to integrate a decision-support toolbox for community activities focused on implementing flood risk reduction in different parts of the world. This publication is based on a white paper developed by two members of the alliance, the International Institute for Applied Systems Analysis (IIASA) and the Wharton School’s Risk Management and Decision Processes Center at the University of Pennsylvania (Wharton).

Any information included in this publication, was compiled from sources believed to be reliable for informational and educational purposes only. All sample policies and procedures herein, if any should serve as a guideline, which you can use to create your own policies and procedures. We trust that you will customize these samples to reflect your own operations and believe that these samples may serve as a helpful platform for this endeavor. Any and all information contained herein is not intended to constitute advice (particularly not legal advice). Accordingly, persons requiring advice should consult independent advisors when developing programs and policies. We do not guarantee the accuracy of this information or any results and further assume no liability in connection with this publication and sample policies and procedures, including any information, methods or safety suggestions contained herein. We undertake no obligation to publicly update or revise any of this information, whether to reflect new information, future developments, events or circumstances or otherwise. Moreover, Zurich reminds you that this cannot be assumed to contain every acceptable safety and compliance procedure or that additional procedures might not be appropriate under the circumstances. The subject matter of this publication is not tied to any specific insurance product nor will adopting these policies and procedures ensure coverage under any insurance policy. Nor does Zurich endorse or reject the information presented herein. Zurich’s name and logos are trademarks owned by Zurich Insurance Company Ltd.

© 2013 Zurich Insurance Company Ltd. All Rights Reserved.

Legal note