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benefit can be expressed as reduced likelihood or severity of losses. Quantification of risk and the degree of risk reduction achieved by a dam safety program are necessary if the benefit of such a program is to be demonstrated. In analyzing choices among alternatives in d~signt inspectiont maintenancet or repair of damst it is seldo necessary to deal with absolute probabilities. What is needed is an assessment of relative or fractional ~isks together with the differences in cost associated with eac~alternative. This greatly facilitates decisions tha~ involve the allocation of limited resources. On the other handt cost and risk assessments are often controversial. Different parties (owner, downstream resident, and contractor, for example) are affected differently by the outcomes of such assessments. Thus," they tend to assess costs and risks differently, and they may select different criteria on which to base the decision. In light of these conflicts, the main value of such methodologies may be in providing,a framework for organizing factual information about cQstand risk, for structuring the decision making process, and for promoting communicatio among opposing parties. 5.2.2 Conclusions The federal government should encourage states and dam owners to use risk assessment as a tool for balance resource allocation to mitigate dam failure hazards. The inspection reports compiled by the Corps of Engineers contain important information about deficiencies that present dangers of dam failures. Thi information could be combined with data about failure consequences in an analysis to identify which dams (for example, in a given jurisdiction) ahould have priority for further investigation or to help in choosing among alternative strategies for providing added protection for a single dam or group of dams. The U.S. government should provide guidance to the statea for such use of the inspection data. -27-