“Average global flood losses in 2005 are estimated to be approximately US$6 billion per year, increasing to US$52 billion by 2050 with projected socio-economic change alone… With climate change and subsidence, present protection will need to be upgraded to avoid unacceptable losses of US$1 trillion or more per year.”
Hallegatte, Stephane et al., 2013
While the change between the current and future predicted global insurance cost is astonishing, the cost in time of repairing and re-commissioning networks of plant and equipment is a key consideration of Flood Continuity Management. Depending on the site processes, there is also the potential ‘clean up’ cost should containment of a potential pollutant fail and the product mix with the flood waters.
Managing the risk posed by flooding at industrial facilities involves the implementation of integrated methods that are distinct from more conventional municipal flood risk management schemes, which do not generally involve contingency planning. In addition to providing protection from inundation, flood risk management at industrial facilities also needs to address issues associated with long term planning response, emergency entrance and exit routes, continuity and reliability of the facilities and protection of hazardous material inventories.
WorleyParsons has developed a “Flood Continuity Management” process to ensure that all aspects of flood risk are considered and addressed at industrial facilities.