Another method for decision-making under uncertainty is adaptive
management. Adaptive management allows for the updating of actions on
the basis of new information as it becomes available. In this sense,
adaptive management is an ex-post evaluation of options based on the
preferences of the decision maker (e.g. private or public). Adaptive
management requires the availability of new information on the
effectiveness of an adaptation action, and therefore is closely related
to monitoring and evaluating, and learning (Armitage et al., 2008).
In
the case of some options this is straightforward. For example, in the
case of an insurer deciding on the premium for insurance against flood
damage in the coastal zone, new information on damages is directly
observable. This new information can be used to adjust premiums. For
other decisions on other options, such as the height by which to raise
the dike, updates at a later stage are much more expensive
