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You are working to evaluate the risk of flood to an area as part of a business continuity planning (BCP) effort. You consult the flood maps from the Federal Emergency Management Agency (FEMA). According to those maps, the area lies within a 200-year flood plain. What is the annualized rate of occurrence (ARO) of a flood in that region?

Answer Options

A

200

B

0.01

C

0.02

D

0.005

Correct Answer: D

Explanation

The annualized rate of occurrence (ARO) is the expected number of times an incident will occur each year. In the case of a 200-year flood plain, planners should expect a flood once every 200 years. This is equivalent to a 1/200 chance of a flood in any given year, or 0.005 floods per year.