Erich J. Plate

Risk management has been established as a well defined procedure for handling risks due to natural, envi-ronmental or man made hazards, of which floods are representative. Risk management has been discussed in many previous papers giving different meanings to the term – a result of the fact that risk management actually takes place on three different levels of actions: the operational level, which is associated with operating an ex-isting system, a project planning level, which is used when a new, or a revision of an existing project is planned, and a project design level, which is embedded into the second level and describes the process of reaching an optimal solution for the project. The first two levels will be briefly described in the the paper. It will be empha-sized that the transition from the first to the second level is a dynamic process. As the value system of a nation changes, and as the natural boundary conditions are modified by human actions or global changes, an existing system will be found not meeting the demands of the present society, and actions on the second level are initi-ated. The decisions for change depend on the changes in options available for handling a flood situation, as well as on the changes in risk perception and attitudes towards risk. On the third level the actual cost of a design are evaluated and compared with the benefits obtained from the planned project. In particular, on this level the re-sidual risk is considered, i.e. the risk which remains even after a project is completed and fully operational.