Standard Guide for Developing Cost-Effective Community Resilience Strategies

Importancia y uso:

5.1 Investments in projects supporting community resilience are characterized by uncertainties regarding the frequency and magnitude of natural, technological, and human-caused disruptions. Accounting for these low-probability, high-consequence events challenge traditional economic evaluation methods.

5.2 The traditional approach to evaluating the benefit-cost of investment decisions routinely focus on measures directly tied to loss avoidance.

5.3 Following this guide when performing an economic evaluation assures the user that relevant economic information, including information regarding uncertainties and indirect inputs, is considered for capital project facing possible disruptions from natural, technological, and human-caused hazards.

5.4 Use this guide in the planning phases of community resilience plan development process. Consideration of risk mitigation choices early in the planning process allows both greater flexibility in addressing specific hazards and lower costs associated with their implementation.

5.5 Use this guide to integrate community resilience plans with economic development, zoning, hazard mitigation, and other community planning activities that affect buildings, public works, and infrastructure systems.

5.6 Use this guide to identify all relevant inputs—that is, costs and benefits (savings)—associated with construction, implementation, and use of the capital asset, over the lifetime of the asset. Relevant inputs include direct, indirect and externalities, and non-market values.

5.7 Use this guide for economic evaluations based on Practices E917 (life-cycle costs), E964 (benefit-to-cost and savings-to-investment ratios), E1057 (internal rate of return and adjusted internal rate of return), E1074 (net benefits and net savings), E1121 (payback), E1699 (value engineering), and E1765 (analytical hierarchy process for multi-attribute decision analysis), and Guide E1369 (treatment of uncertainty).

5.8 Use this guide in conjunction with Guide E2204 to summarize the results of economic evaluations involving natural, technological, and human-caused hazards.

5.9 This guide generalizes Guide E2506 (cost-effective risk mitigation plan for new and existing constructed facilities) by evaluating investments into capital assets for a community.

Subcomité:

E06.81

Referida por:

E3377-24, E3350-22

Volúmen:

04.12

Número ICS:

03.100.01 (Company organization and management in general)

Palabras clave:

adjusted internal rate of return; analytical hierarchy process; building condition assessment; building economics; building systems; cost analysis; economic evaluation methods; economic impacts; engineering economics; homeland security; impact assessment; life-cycle costs; man-made hazards; measures of economic performance; Monte Carlo simulation; multi-attribute decision analysis; natural hazards; net savings; present-value analysis; project management; risk assessment; risk mitigation strategies; savings-to-investment ratio; sensitivity analysis; value engineering;