What is Risk and Return on Investment Tool (RROIT)?
Trends in Canada with respect to weather-related risk show increases in damages borne by property owners and municipal governments resulting from extreme rainfall and flooding events. There is an increasing trend in legal litigation against municipalities and conservation authorities to recover damage costs due to flooding caused by non-resilient infrastructure. Predictive climate change modelling technology is becoming more advanced and can be used to estimate changes in climate patterns such as the increased frequency of extreme rainfall events. The financial implications with respect to economic impacts of these extreme rainfall events remain a major concern and need to be fully understood to best inform risk mitigation efforts.
Sample and Contact
National Disaster Mitigation Program (NDMP) Stream 3, Disaster Mitigation Action Fund (DMAF) and Infrastructure Canada’s Climate Change Lens require municipalities to complete a climate change risk assessment and return on investment assessment (i.e.: cost benefit analysis) as a prerequisite for infrastructure funding. RSI, the Credit Valley Conservation Authority, and additional partners have developed a Risk and Return on Investment Tool (RROIT), a multi flood hazard, turn key tool to help municipalities, property owners and conservation authorities make evidence-based cost-effective decisions to reduce flood and erosion risks under existing and future climate scenarios.
The Risk and Return on Investment Tool performs the following key functions:
- Perform regional climate change projections;
- Identify public and private properties and infrastructure at risk of flooding (riverine, groundwater, urban overland and sanitary) and erosion under various storm events;
- Quantify the potential economic impact resulting from direct and indirect damages (in Dollars) to private and public infrastructure due to flooding an erosion;
- Identify socially vulnerable areas with emphasis on vulnerable populations and the associated health impacts from flooding;
- Provide a platform to evaluate and compare risk-reduction that can be achieved by various mitigation solutions (e.g. natural assets, grey and green stormwater infrastructure, land acquisition along the floodplain, flood proofing measures to protect structures from damage);
- Perform a financial assessment of the return on investment associated with each mitigation solution (and combination) by comparing life cycle costs to the benefits (averted damage costs) achieved by reducing flood and erosion risks under various climate change scenarios; and,
- Highlight high risk areas spatial with considerations for social / health and economic impacts from property and infrastructure vulnerabilities to support prioritization of asset investment.