The latest version of Australian Rainfall and Runoff (ARR2016) proposes new terminology for flood risk (see Book 1, Chapter 2.2.5). Preferred terminology is provided in Figure 1.2.1 which is reproduced below.

Definitions:

- EY – Number of exceedances per year
- AEP – Annual exceedance probability
- AEP (1 in x) – 1/AEP
- ARI – Average Recurrence Interval (years)

For floods rarer than 5%, the relationship between the various frequency descriptors can be estimated by the following straightforward equations.

For common events, more complex equations are required (these will also work for any frequency):

A key result is that we can’t use the simple relationship ARI = 1/AEP for frequent events. So, for example, the 50% AEP event is not the same as the 2-year ARI event.

### Example calculations

For an ARI of 5 years, what is the AEP:

For an AEP of 50%, what is the ARI?

R functions and example calculation available as a gist.