The first step in doing an economic valuation is to develop a risk management scenario that is analyzed in economic terms.
The steps to develop and evaluate various risk management scenarios can be found in the risk management training module.
Unit costs for the risk management scenario are obtained through the following steps:
- Gather cost data: Unit costs can be drawn from various data sources (market survey, statistical collection, etc.) or from direct consultation with providers. Cost studies conducted for similar projects can also be used; and
- Adjust costs to local conditions: where applicable, cost data must be adjusted to take into account local conditions, including timing (costs estimated in past years must be escalated to account for inflation), local market conditions, etc.
Example risk management scenarios, with units costs, can be found in Appendix 2 of the economic valuation case studies: