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RISK

MANAGEMENT
(final project by Denisa Mockova; sources: World Bank material, flickr, google)

Risk management (RM) as a concept has


been discussed widely within, but not

Effective
Successful
&
Inclusive
Risk-Management

exclusively, the international


organizations and actors. Its basic
definition, according to the World Bank is
that it is a process of confronting risks,
preparing for them and coping with their

PRODUCING RESILIENCE
ability to mitigate losses from adverse
shocks and to foster the economy
ACHIEVING PROSPERITY
by improving benefits from pursuing
opportunity

effects. The natural disasters, economic

While these terms might sound vague, in

crises, uneven development, among

reality, the complexity of RM engages

others, have been posing significant

various stakeholders which cooperate in a

threat to people all around the world, as

matter which allows them to tackle the

well as the international system in

problems and to be successful in pursuing

general. RM is therefore absolutely

a common goal of healthy, prosperous

necessary and it has two main aims.

and opportunity-rich society.

WHY IS RISK
MANAGEMENT SO
ESSENTIAL ?

if RM does not engage properly, the


circulation of shock - (lack of)

shocks affect people whether in


developed or developing countries
the most vulnerable are the poorest
people, unfortunately
additionally, these also lack the
options for managing risk/shocks

response/even deeper poverty vulnerability - shock at even bigger


scale, will be as a vicious circle,
where there is no way out
Sustainable Development goes
hand in hand with Risk
Management at all levels

WHAT DOES EFFECTIVE,


SUCCESSFUL & INCLUSIVE RISKMANAGEMENT ACTUALLY ENTAIL?
Thinking LONG-TERM, in advance: aim for rather prevention then for after-shock
engagement. The policies which need to be introduced must be focused on making
conditions which would not be a breeding ground for catastrophes. Even when the
disaster strikes, with successful implementation of RM the country can lessen the
damage and cope with consequences easier

PREPARATION : by thinking in advance, we refer to especially the preparation phase,


when all the effective tools,knowledge,skills and other important things shall take place in
order to encompasses three important and irreplaceable concepts
a) acquiring knowledge - we look for quality of information and access to it
b) obtaining protection - protection as essential component of security
c) obtaining insurance - can be of a great value in stage of preparation
COPING : after shocks hit (and
they increasingly will), coping
serve as response mechanism.
Examples are emergency and
relief responses as well as afterdisaster management of the
ground

Cooperation &Engagement of : Households + Communities + Enterprise Sector +


Financial Sector + State + International Community
> it is absolutely necessary that Risk-Management is being used on all of these levels, as
each of them is very specific and requires different interactions in order to facilitate the
final aims

think about risk chain : the


interaction of various factors is
affecting the final conditions;
we talk about shocks versus:
external environment
internal conditions
risk management
outcomes
setting and building right,
realistic strategies and
foundations: these include
everything from basic
policies, through quality of
information, setting the
right incentives, via
overcoming behavioral
obstacles and ending with
ensuring effective and
sufficient financing

LESSONS LEARNED
Successful inclusive & effective Risk Management requires involvement of all the actors and stakeholders. If we are about to
achieve a win-win situation, meaning managing the risks while at the same time enhancing the development, we must take
into consideration all those factors mentioned above. They should flow harmonically among themselves and make a beautiful
whole as a part of risk management strategy for all the generations.