OECD member countries have been significantly affected by disasters over the past decades, with increasing economic impacts. Disasters may arise from natural hazards, pandemics, major industrial or technological accidents, and malicious acts. In the last 30 years, the number of disasters has increased from around 100 to more than 300 each year across OECD member countries, causing hundreds of billions of US dollars in annual losses. The immediate consequences are visible in terms of human lives lost and destruction of capital stock, and longer term impacts accrue due to disruptions in economic flows. Large critical infrastructure can also be at risk, with devastating impacts as witnessed in the aftermath of the great east japan earthquake in 2011. Such large-scale disasters have led countries to strengthen risk governance policies by including a broader set of stakeholders and communities in the identification and assessment of risks as well as the implementation of measures that increase resilience at national and sub-national levels.

The 2014 OECD Recommendation on the Governance of Critical Risks recommends that countries “engage all government actors at national and sub-national levels, to co-ordinate a range of stakeholders in inclusive policy making” in the governance of critical risks. The aim of a whole-of-society approach to security and safety of citizens and their property is to defend territorial integrity, and help sustain critical infrastructure and well-functioning markets. OECD countries have shown commitment to achieving a high quality of risk governance, which supports strong implementation of risk management policies. Citizens and businesses expect governments to be prepared for a wide range of possible crises and global shocks, and to handle them effectively should they arise.

Risk communication is fundamental to governments’ risk management strategies that aim to reduce future losses and damages from disasters. It increases awareness in households, businesses and communities about exposure to hazards and specific vulnerabilities, and informs what prevention, mitigation and preparation measures to take. Public debates on investments in these measures are thus better informed.