Abstract: A reservoir project classification system considering dam failure consequences is constructed in view of the insufficient thought of dam failure consequences in China. By comparing the classification methods of reservoir projects both domestically and internationally, the classification indexes are analyzed and demonstrated. Based on the social risk criteria and safety standards of reservoir dams in China, a link among "project rank-failure probability-dam failure losses" is established, and the thresholds of life and economic losses allowed for different project ranks are formulated. This manuscript puts forward the classification criteria for reservoir based on scale, benefits and dam failure consequences, and expounds the relevant concepts and measures for engineering grade review and risk management in the operation stage. Applying the method to the rank classification of Changzhuang, Jiangang and Guojiazui reservoirs, the results show that the project rank and flood protection criteria of these three reservoirs should be increased from the existing one. This study is of great significance to supplement and improve the standard for rank classification of water and hydropower projects, and can further promote the practical application of risk management concepts and techniques in reservoir projects.