Adaptive policymaking to prepare for current and future drought risks requires an integrated assessment of policy actions and combinations of those under changing conditions. This entails quantification of drought risks, integrating drought probability and socio-economic consequences for all relevant sectors that are potentially impacted by drought. The investment costs of proposed policy actions and strategies (various actions combined) can then be compared with the expected risk reduction to determine the cost-effectiveness. This paper presents a method to quantify drought risk in the Netherlands under changing future conditions and in response to policy actions. It illustrates how to use this information as part of a societal cost–benefit analysis and in building an adaptive long-term strategy. The method has been successfully applied to support decision making on the Netherlands' national drought risk management strategy as part of the National Delta Programme for climate change adaptation.