ECONOMIC

VULNERABILITY
FACTOR
Almaden, Rowie
Ausa, James
Avila, Leandro
Avestruz, Cedie
Vulnerability is a term used to describe the state
of being exposed to the possibility of harm or
damage.

Economic Factors
- can refer to the susceptibility of a system or
organization to external factors that could
negatively impact its financial stability.
One example of an economic vulnerability is
an organization's dependence on a single
supplier for a critical resource. If that supplier
were to go out of business or experience a
disruption in its operations, the organization
could be left without the resources it needs to
function properly.
Vulnerability can also refer to the
susceptibility of individuals or groups
to economic shocks.
In order to address economic
vulnerabilities, it is important to identify
and mitigate potential risks through
measures such as diversification,
contingency planning, and targeted
social programs.
Several Economic Factors
That Can Affect
Vulnerability
 INCOME

Individuals and households with lower

incomes are often more vulnerable to
economic shocks, such as job loss or
unexpected expenses, as they may not have
sufficient savings or resources to fall back on.
 EMPLOYMENT

Individuals who work in industries that are

more susceptible to economic downturns, such
as retail or hospitality, may be more vulnerable
to job loss and financial instability.
 ACCESS TO CREDIT

Individuals who have limited access to credit

may be more vulnerable to unexpected
expenses, as they may not have the ability to
borrow money to cover those expenses.
 HOUSING

Individuals who are housing insecure, such as

those who are homeless or living in unstable or
unsafe housing, may be more vulnerable to
economic shocks as their housing situation can
impact their ability to maintain employment and
access resources.
 GEOGRAPHIC LOCATION

Individuals and communities that are located in areas

with limited economic opportunities or that are
more susceptible to natural disasters or other
external shocks may be more vulnerable to economic
instability.
These factors can intersect and compound each
other, leading to greater vulnerability for certain
individuals and groups. Addressing these
economic factors can help to reduce vulnerability
and promote greater economic stability and
resilience.
Importance of Economic
Factor in Vulnerability
Economic factors are critical to
understanding vulnerability, as they often
play a central role in determining an
individual's or group's susceptibility to
economic shocks and other external
stressors. Understanding how economic
factors impact vulnerability is important
for several reasons:
Risk Assessment

Economic factors can help identify the

specific risks and vulnerabilities that
individuals or groups face, allowing
policymakers and other stakeholders to
develop targeted interventions to reduce
those risks.
Policy Development

Economic factors can inform the development of

policies and programs aimed at reducing
vulnerability and promoting economic stability.
For example, policies that address income
inequality, promote access to credit, and support
affordable housing can help reduce vulnerability
for those who are most at risk.
Resilience

Understanding how economic factors impact

vulnerability can help individuals and
communities become more resilient in the
face of economic shocks and other stressors.
By developing strategies to mitigate risk and
promote stability, individuals and
communities can better weather economic
downturns and other external shocks.
Inequality

Economic factors can also contribute to inequality,

as those who are already marginalized or
economically disadvantaged may be more
vulnerable to economic shocks and other stressors.
By addressing economic factors that contribute to
vulnerability, policymakers and other stakeholders
can work to reduce inequality and promote greater
economic equity.
In short, understanding the role of
economic factors in vulnerability is
critical for promoting greater
economic stability, resilience, and
equity.
THANK YOU!