Sovereign financial disaster risk management: The case of Mexico

In 2006, Mexico became the first transition country to transfer part of its public-sector natural catastrophe risk to the international reinsurance and capital markets. The Mexican case is of considerable interest to highly exposed transition and developing countries, many of which are considering similar transactions. Risk financing instruments can assure governments of sufficient post-disaster capital to provide emergency response, disaster relief to the affected population and repair public infrastructure. The costs of financial instruments, however, can greatly exceed expected losses, and for this reason it is important to closely examine their benefits and alternatives. This paper analyzes the Mexican case from the perspective of the risk cedent (the Ministry of Finance and Public Credit), which was informed by analyses provided by the International Institute for Applied Systems Analysis (IIASA). The rationale for a government to insure its contingent liabilities is presented along with the fiscal, legal and institutional context of the Mexican transaction. Using publicly available data, the paper scrutinizes the choice the authorities faced between two different risk-transfer instruments: reinsurance and a catastrophe bond. Making use of IIASA's catastrophe simulation model (CATSIM), this financial risk management decision is analyzed within the context of a public investment decision.     

The future of disaster risk management

The present perspective summarizes and projects the results of a two-day workshop held in 2013 with the presence of 21 known disaster risk specialists from academia and practice. Faced with the disconnect between ever-increasing and even-accelerating disaster losses and the declared progress in disaster risk management (DRM) practice over the last eight years, the document attempts to explain the current situation and project future needs in order to increase the saliency and effect of DRM. A review of current conceptual problems and their impact on knowledge and action, of the current role of DRM in society, of governance aspects and of the notion of transformative development and its relationship to DRM is provided. The critique of current practice and understanding of disaster risk then leads to an attempt to identify key needs for the future and changes that must be introduced in order for DRM to become more mainstream and effective. Among the more central concerns, the document points to the way in which disasters are still many times seen as exogenous happenings as opposed to social constructions, product of skewed development practices. This then is reflected in much governance practice and action that are flawed. The difficulty in moving from a reactive and corrective DRM practice to a more prospective, risk avoidance practice is also highlighted.     

Financial services and disaster risk finance: Examples from the community level

Increased attention has recently been given to the possible role of financial services in the management of natural disaster risk. Local communities have been at the forefront of developing innovative disaster risk finance strategies and implementing risk-oriented incentive programs. In view of increasing risks, including the impacts of climate change, such programs will become more important. This paper examines four models and some recent experiences in using financial services at the community level. The paper offers an overview of advantages and limitations of each model to manage disaster risk in communities. Examples include a federal government initiated scheme of social protection funds, a local government risk reduction scheme, an insurance product provided by a non-governmental organization , and a micro-insurance scheme. Finally, the paper offers some directions about specific ways that the public and private sectors, in collaboration with other partners can improve finance alternatives for disaster management at the community level. It appears that a range of follow-up studies and further dialogue is needed, in order to expand the knowledge on what types of risk finance models can help manage and reduce the financial impacts of natural disasters.     

Financial services and disaster risk finance: Examples from the community level

Increased attention has recently been given to the possible role of financial services in the management of natural disaster risk. Local communities have been at the forefront of developing innovative disaster risk finance strategies and implementing risk-oriented incentive programs. In view of increasing risks, including the impacts of climate change, such programs will become more important. This paper examines four models and some recent experiences in using financial services at the community level. The paper offers an overview of advantages and limitations of each model to manage disaster risk in communities. Examples include a federal government initiated scheme of social protection funds, a local government risk reduction scheme, an insurance product provided by a non-governmental organization, and a micro-insurance scheme. Finally, the paper offers some directions about specific ways that the public and private sectors, in collaboration with other partners can improve finance alternatives for disaster management at the community level. It appears that a range of follow-up studies and further dialogue is needed, in order to expand the knowledge on what types of risk finance models can help manage and reduce the financial impacts of natural disasters.     

黄河三角洲滨海湿地的区域自然灾害风险

黄河三角洲是中国典型的滨海河口湿地，具有重要的生态和经济意义。该区域自然灾害频繁，海岸侵蚀、海面上升、风暴潮和黄河断流等主要灾害风险因子之间密切相关。在它们的共同作用下，黄河三角洲滨海湿地面积不断减少，地表结构遭到破坏，生态特征发生改变，生态环境持续恶化，导致滨海湿地不断损失和退化。应从系统的角度认识黄河三角洲滨海湿地与区域自然灾害的关系，科学对待并切实缓解滨海湿地的损失和退化。     

The politics of risk in the Philippines: comparing state and NGO perceptions of disaster management

It is now generally appreciated that what constitutes vulnerability to one person is not necessarily perceived as such by the next. Different actors 'see' disasters as different types of events and as a result they prepare for, manage and record them in very different ways. This paper explores what different perceptions of vulnerability mean in terms of the understanding and practices of two significant sets of actors and stakeholders involved in disaster preparedness and management in the Philippines: the state and NGOs. Approaches to disaster are not just a function of people's perceptions of disaster risk but also of their understanding of the prevailing social order and social relations. Despite a shared vocabulary—which increasingly presents disasters as processes rather than events, takes a proactive rather than a reactive approach, and favours the inclusion of stakeholders rather than solely relying on technocratic management—different realities continue to make for different responses.     

Climate change implications for disaster risk management in Japan: A case study on perceptions of risk management personnel and communities in Saijo city

This paper reviews climate change impacts and the existing disaster risk management system in Japan and offers the results of a structured questionnaire survey of the community leaders and disaster risk management personnel of Saijo city of Japan that assesses their perceptions about dealing with the extreme disasters by the existing disaster risk management systems. This study was inspired by the record number of typhoon landfall that has surprised the local government and communities in 2004. While unearthing the hidden vulnerabilities in cities like Saijo, this event has loosened the confidence of local communities on the disaster risk management systems. From the study, we conclude that the existing disaster risk management systems need further fillip and that the proactive community involvement in disaster risk management is still in nascent stages. Associating with the scientific community, involving the local communities (including the elderly), enhancing the redundancy in disaster risk management systems, inculcating strategic thinking and micro-level planning, conducting vulnerability assessments by considering the special circumstances including resource constraints of small cities and better policy coordination across the administrative hierarchy are some important considerations for dealing with the uncertainty brought by the extreme events.     

Assessing differences in chemical disaster proneness: The community chemical hazard vulnerability inventory*

The burgeoning number of accidents with dangerous chemicals makes it incumbent upon community and regional planners to systematically deal with this problem. The first step invariably involves the assessment of the likelihood and type of incident which may impact a given area so that disasters may be averted or, at least, their effects mitigated. This paper presents one such assessment scheme, the Community Chemical Hazard Vulnerability Inventory (CCHVI). This instrument, aside from considering the type and volume of substances posing a threat to a designated area, considers the physical and human resources available, as well as the general state of readiness of the area (including such things as the interface of emergency-related organizations). The use of such vulnerability assessment instruments allows local emergency planners to identify particular dangers within their communities and permits regional planners to allocate funds for planning according to relative needs.     

综合自然灾害风险管理--全面整合的模式与中国的战略选择

综合自然灾害风险管理是目前国际上防灾减灾和灾害管理较先进的措施和模式，是针对各种自然灾害的全灾害的管理，是贯穿于灾害管理全过程，集中于灾害风险和承灾体脆弱性分析并强调多层面、多元化和多学科参与合作的全面整合的灾害管理模式。介绍了综合自然灾害风险管理的必要性、概念和本质，探讨了综合自然灾害管理的基本理论、对策及其实施过程和实施战略，在此基础上提出了对我国实施综合自然灾害风险管理的建议，为强化和推动我国综合自然灾害风险管理提供参考。     

1990年以来中国海洋灾害系统风险特征分析及其综合风险管理

长期以来,海洋灾害一直是困扰着海域及海岸带社会经济发展的一大障碍.中国是深受海洋灾害影响的国家之一.为此,从灾害系统论的角度,分析了1990年以来中国海洋灾害系统的风险特征.研究表明,中国在过去的15年中,工程性防灾减灾措施已经使海洋灾害灾情得到了一定的控制,但由于中国海域海事活动不断增多、海岸带经济密度快速提高,大大增加了海域及海岸带承灾体对海洋灾害风险的暴露,又由于海岸带及近海海域污染加重,海洋生物灾害发生的可能性增大,使中国海域面临的灾害风险趋于上升.此外,还讨论了中国海洋灾害综合风险管理的体系,提出从海洋灾害系统角度,加强海洋灾害综合风险管理能力的建设,以促进海洋及海岸带地区由政府、企业、社区共同组成的综合减灾范式的建立.     

城市灾害综合风险管理的三维模式--阶段矩阵模式

在考虑防灾减灾措施下,构建了城市灾害风险综合评估的框架体系,包括11种城市灾害所对应的风险系统评估后的综合评估,每个系统的评估是在考虑防灾减灾措施下采用信息扩散技术进行的信息处理和评估.在综合评估的基础上提出了由阶段、灾害风险种类和级别组成的城市灾害综合风险管理的三维模式--阶段矩阵模式.它是由3个阶段、6个环节及每个环节的矩阵模式组成.据此,简述了城市灾害综合风险管理的过程是灾前预防矩阵管理、灾前准备矩阵管理、灾中应急矩阵管理、灾中救援矩阵管理、灾后恢复矩阵管理和灾后重建矩阵管理不断循环和完善的过程.最后,用一个虚拟实例说明了阶段矩阵模式的有效性.     

福建海湾地区灾害地质特征与工程风险控制

福建省海湾地区地质环境比较复杂,孕育着多种灾害地质因素,使港湾工程活动存在地质灾害的风险.通过对港湾工程及其地质灾害风险的分析,探讨了如何进行港湾工程地质灾害的风险控制,认为港湾工程地质灾害风险控制内容包括选址阶段风险的回避、设计施工阶段风险的处理及运行阶段风险的监控.地质灾害风险评估是地质灾害风险控制的首要任务,设计与施工阶段的风险评估应立足于评价灾害地质因素的致灾可能性以及工程应对措施的有效性,还应根据施工中出现的前阶段评估中未发现或未予重视的重要地质情况,及时对工程方案进行修正.     

中国水灾风险综合管理--平衡大都市区水灾致灾强度与脆弱性

中国大都市区主要分布在大江大河的中下游地区,由于区域土地利用格局的巨大变化,特别是较多的水域和湿地因城市化而被占据,因此,一方面大都市区面临严重的洪水危险,另一方面为了使大都市区尽可能减轻洪水灾害,而加强了防洪能力的建设.然而,近50年的减灾实践证明,洪水灾害却在波动中趋于上升,即大都市区对洪水的脆弱性在增大.在对中国大都市区洪水灾害的区域分析基础上,以广东省为例,构造了综合水灾致灾因子和承灾体为一体的风险评估模型体系,以此提出了平衡大都市区水灾致灾强度与脆弱性的基本土地利用模式,和"政府-企业(社区)-保险公司"相结合的企业风险管理模式.     

Impact of psychological risk factors on disaster rescue operations: the case of Italian volunteers

This paper reports on research into the characteristics of emergency rescue workers, with a focus on psychological distress. We present the results of a study of volunteers from the Italian national civil protection programme. A questionnaire was administered to 2,576 subjects from all over Italy. Most respondents were men, mostly unemployed, whose average level of education was higher than that among most Italian volunteers. Many were poorly endowed with basic skills, with large differences according to geography. Many expected to convert their volunteer activities into permanent jobs. Using this data, we employed a logistical regression model to analyse the risk of low, moderate and severe psychological distress symptoms, including anxiety and panic attacks, during rescue operations. The results indicate that some rescuers are particularly vulnerable to distress. The highest risk factors pertained to volunteers from southern Italy whose training is inadequate, who have little experience of emergency work and who play subordinate roles in small teams that lack psychological support services.     

Use of computer models of flood inundation to facilitate communication in flood risk management

It is now widely recognised that good communication between multi-disciplinary stakeholders is central to effective flood risk management. Recent developments in Geographical Information Systems, increased availability of accurate digital terrain models from remotely sensed data sources and improved graphical computer interfaces have made the outputs from computer models of flood inundation easily accessible to the stakeholder community. As a consequence, predictions from such models are now being used routinely as a means of communication between engineers and other stakeholders in flood risk management. This paper provides a review of the modelling methods most appropriate for flood risk communication. These are one-dimensional models which are suitable for simulating flood risk at a catchment or sub-catchment scale and appropriate for communicating the impact of strategic flood management decisions and two-dimensional models which can be applied across a range of scales but, are now being regularly applied at the relatively small scale, less than 10 km², where they have the potential to inform and communicate disaster management decisions. The role of such models in communicating between modellers and non-modellers by providing a means for immediate visualisation of “the future” is discussed and illustrated by application to two case studies.     

Use of computer models of flood inundation to facilitate communication in flood risk management

It is now widely recognised that good communication between multi-disciplinary stakeholders is central to effective flood risk management. Recent developments in Geographical Information Systems, increased availability of accurate digital terrain models from remotely sensed data sources and improved graphical computer interfaces have made the outputs from computer models of flood inundation easily accessible to the stakeholder community. As a consequence, predictions from such models are now being used routinely as a means of communication between engineers and other stakeholders in flood risk management. This paper provides a review of the modelling methods most appropriate for flood risk communication. These are one-dimensional models which are suitable for simulating flood risk at a catchment or sub-catchment scale and appropriate for communicating the impact of strategic flood management decisions and two-dimensional models which can be applied across a range of scales but, are now being regularly applied at the relatively small scale, less than 10 km², where they have the potential to inform and communicate disaster management decisions. The role of such models in communicating between modellers and non-modellers by providing a means for immediate visualisation of “the future” is discussed and illustrated by application to two case studies.     

Designing new institutions for implementing integrated disaster risk management: key elements and future directions

The goal of integrated disaster risk management is to promote an overall improvement in the quality of safety and security in a region, city or community at disaster risk. This paper presents the case for a thorough overhaul of the institutional component of integrated disaster risk management. A review of disaster management institutions in the United States indicates significant weaknesses in their ability to contribute effectively to the implementation of integrated disaster risk management. Our analysis and findings identify eight key elements for the design of dynamic new disaster management institutions. Six specific approaches are suggested for incorporating the identified key elements in building new institutions that would have significant potential for enhancing the effective implementation of integrated disaster risk management. We have developed a possible blueprint for effective design and construction of efficient, sustainable and functional disaster management institutions.     

From drought relief to post-disaster recovery: The case of Botswana

This article discusses the initiative of the Government of Botswana in formulating and introducing a programme to assist recovery in rural areas after the present drought period as an important aspect of the national development effort. It examines the process by which this Post Drought Recovery Programme was arrived at, its limitations, the extent of its appropriateness to longer-term factors which render rural households more vulnerable to drought, and suggests conclusions which may be drawn to inform the design of similar programmes elsewhere.     

Probabilistic cost‐benefit analysis of disaster risk management in a development context

Limited studies have shown that disaster risk management (DRM) can be cost‐efficient in a development context. Cost–benefit analysis (CBA) is an evaluation tool to analyse economic efficiency. This research introduces quantitative, stochastic CBA frameworks and applies them in case studies of flood and drought risk reduction in India and Pakistan, while also incorporating projected climate change impacts. DRM interventions are shown to be economically efficient, with integrated approaches more cost‐effective and robust than singular interventions. The paper highlights that CBA can be a useful tool if certain issues are considered properly, including: complexities in estimating risk; data dependency of results; negative effects of interventions; and distributional aspects. The design and process of CBA must take into account specific objectives, available information, resources, and the perceptions and needs of stakeholders as transparently as possible. Intervention design and uncertainties should be qualified through dialogue, indicating that process is as important as numerical results.     

Re-framing risk: the changing context of disaster mitigation and preparedness

This issue of Disasters explores the roles of NGOs and other actors in disaster mitigation and preparedness and also reviews broad international trends in risk management and disaster prevention. The need to address risk, and with that the motivation to improve disaster mitigation and preparedness, has tended to fall between the cracks of grander frameworks of development co-operation and humanitarian assistance. Despite the seemingly glaring need to reduce the horrific impact of floods, droughts and wars, disaster mitigation and preparedness have neither the allure of directly 'saving lives', nor of providing an 'escape from poverty'. There are, however, signs that risk management is becoming a mainstream concern. Factors such as the need to address factors that do not fit into traditional slots on the relief-development continuum, the rising economic costs of disasters and a growing acknowledgement that aid will never cover more than a small fraction of the costs of disasters are all leading to new approaches, priorities and institutional configurations. A realisation that dealing with risk and insecurity is a central part of how poor people develop their livelihood strategies has begun to position disaster mitigation and preparedness within many poverty alleviation agendas. A number of long-standing challenges remain; most of all, the complexities of maintaining the political will that is needed to ensure that risk management becomes more than a passing fad.