Benefit-Cost Analysis (BCA) Webinar
The Economic RSF designed and led a two-hour presentation and demonstration of FEMA’s Benefit Cost Analysis (BCA) tool.
Benefit-Cost Analysis (BCA) is a method that determines the future risk reduction benefits of a hazard mitigation project and compares those benefits to its costs. The result is a Benefit-Cost Ratio (BCR). A project is considered cost-effective when the BCR is 1.0 or greater. Applicants and sub-applicants for Hazard Mitigation and some Public Assistance grants must use FEMA-approved methodologies and tools—such as the BCA Toolkit—to demonstrate the cost-effectiveness of their projects.
The tool is available online and can be useful in any situation that entails calculating the benefits versus the cost of mitigation. The event was produced to introduce all recovery support functions to the BCA tool and to encourage them to convey its value to their local stakeholders who might use it to better manage mitigation/resilience actions.