This study is concerned with flood risk that can be assessed by integrating GIS, hydraulic modelling and required field information. A critical point in flood risk assessment is that while flood hazard is the same for a given area in terms of intensity, the risk could be different depending on a set of conditions (flood vulnerability). Clearly, risk is a function of hazard and vulnerability. This study aims to introducing a new approach of assessing flood risk, which successfully addresses this above-mentioned critical issue. The flood risk was assessed from flood hazard and vulnerability indices. Two-dimensional flood flow simulation was performed with Delft3D model to compute floodplain inundation depths for hazard assessment. For the purpose of flood vulnerability assessment, elements at risk and flood damage functions were identified and assessed, respectively. Then, finally flood risk was assessed first by combining replacement values assessed for the elements and then using the depth–damage function. Applying this approach, the study finds that areas with different levels of flood risk do not always increase with the increase in return period of flood. However, inundated areas with different levels of flood depth always increase with the increase in return period of flood. The approach for flood risk assessment adopted in this study successfully addresses the critical point in flood risk study, where flood risk can be varied even after there is no change in flood hazard intensity.