Disaster Risk Financing

A global survey of practices and challenges

image of Disaster Risk Financing

The publication provides an overview of the disaster risk assessment and financing practices of a broad range of economies relative to guidance elaborated in G20/OECD Framework for Disaster Risk Assessment and Risk Financing. The publications is based on survey responses provided by 29 economies, as well as research undertaken by the OECD and other international organisations, and provides a global overview of the approaches that economies facing various levels of disaster risk and economic development have taken to managing the financial impacts of natural and man-made catastrophes.



Government compensation, financial assistance arrangements and sovereign risk financing strategies

This chapter provides an overview of government compensation and financial assistance arrangements as well as strategies for managing sovereign exposures to disaster risks. It begins by providing an overview of government compensation and financial assistance arrangements across surveyed economies. This is followed by an overview of efforts to put in place the necessary processes to ensure fair and efficient deployment of public funds. Potential approaches to managing sovereign exposures to disasters, including a discussion of ex ante approaches such as reserve funds, contingent credit arrangements and risk transfer tools and ex post approaches such as borrowing in financial markets, re-allocation of funding and taxation are described. The chapter concludes with a discussion of common implementation challenges to ensuring fair and efficient deployment of government compensation and financial assistance and to developing sovereign risk financing strategies and accessing risk transfer tools.


This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error