A stochastic streamflow model is used to develop a risk methodology fo
r operation of reservoirs. The model is based upon representation of t
he flood series as a Poisson counting process. From this model, probab
ility distributions of maximum peak flows, durations, and interarrival
times can be obtained. With these distributions known, the flood volu
mes can be obtained using a triangular hydrograph approximation. Using
the derived distribution functions, risk evaluation curves are develo
ped which aid the reservoir operator in making important real time dec
isions. The procedure can also be used to evaluate the efficiency of a
lternative design strategies.