Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the...
Transcript of Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the...
![Page 1: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/1.jpg)
Hurricane HurryA Caribbean Disaster Risk Financing Game
Designed by Pablo Suarez and Janot Mendler de Suarez
for World Bank DRFTA Team
with thanks to WB DRFI, ACP-EU and GFDRR
![Page 2: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/2.jpg)
Tropical Storm TrajectoriesSince 1980
Cat 2 or stronger
Cat 1 or weaker
No impact over Caribbean
![Page 3: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/3.jpg)
Grenada
St.Lucia
Jamaica
Belize
![Page 4: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/4.jpg)
Goal = Experience disaster risk financing dynamics
One turn = 1 year
Game = simplified representation of reality
Facilitator’s decisions = cannot be appealed
Ground Rules
![Page 5: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/5.jpg)
![Page 6: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/6.jpg)
MARKE
T
5 Stakeholders per Country
AgricultureTransport
Emerg.
Mgment
Financ
e
$ $Tourism
![Page 7: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/7.jpg)
Your Goal: Invest & Develop
![Page 8: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/8.jpg)
WINNERS & LOSERS
Winning Directors: Most Assets Start with 7 or 8
Losing Directors: Crisis Total Assets = 4 or less? → Fired !
Losing Country: CatastropheCannot cover all needs in time (before deadline)
or: More than one Director fired
Winning Country: Most Assets Start with 30
![Page 9: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/9.jpg)
Your Performance depends on:
Needs Covered until Aug.
Productive Assets 8
Min. Finance Cash ?
until July
7
?
![Page 10: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/10.jpg)
Seasonal ConditionsShake and Flip Assets
?
Productive Assets Tokens: inputs per year
Seeds Etc.Labor
Covering NeedsUse Assets to cover 12 months
Infr.
![Page 11: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/11.jpg)
All Needs covered, No Surplus?
“Just enough”
![Page 12: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/12.jpg)
Cover more than needed?
Announce: SURPLUS!
Get 1 New Asset from Marketplace
MARKE
T
![Page 13: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/13.jpg)
MARKE
T
Can’t cover Needs?
DEFICIT: Oh No! Stand Up, Ask for Help
If No Aid: Sell one Asset → Cover all Needs
Sit down after problem solved
4 Assets or less? CRISIS! Minister fired
![Page 15: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/15.jpg)
![Page 16: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/16.jpg)
Year 2:
Tax & Aid
![Page 17: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/17.jpg)
MARKE
T
Min. Finance Gets Annual
BudgetAt the beginning of each year, Get 2 Coins ‘Tax’
Financ
e
$$
$ $
You can use Budget to:
- Help other Ministers
- Save for future use
![Page 18: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/18.jpg)
$ $
“Oh No!” Stand Up, Ask for Help
Min. Finance may cover Deficit
Aid: Min. Finance cover each Need
![Page 19: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/19.jpg)
MARKE
T $ $
All Needs covered? Pay to Market, then Sit
“Oh No!” Stand Up, Ask for Help
Min. Finance may cover Deficit
Aid: Min. Finance cover each Need
$ $
Or sell 1 asset
![Page 20: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/20.jpg)
Year 3:
Shocks &
Loans
Could Shocks lead to Big Deficit?
How to Get Funds Fast?
![Page 21: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/21.jpg)
FinLoans, Inc.“Borrow Now, Repay later”
(with interest)
$
Creditor will give a total of $ 5m
Min of Finance must repay the Loan, as follows:Year 1: $ 1m
Year 2: $ 1m
Year 3: $ 2m
Year 4: $ 2m
Year 5: $ 2m
Year 6: $ 2m
If Min. Finance can’t repay, Creditor will take possession of 7 assets
__________Name and Signature
(Minister of Finance)
![Page 22: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/22.jpg)
Grenada
St.Lucia
Jamaica
Belize
5
4
3
2
1
![Page 23: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/23.jpg)
4
3
2
1
![Page 24: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/24.jpg)
GO GO GO GO
GO TURN GROW GROW
![Page 25: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/25.jpg)
HURRICANE
CATEGORYMILD DAMAGE
Assets disabled one year
2
1
SERIOUS DAMAGEAsset Recovery: $1m, one year
5
4
3 $
$
$ $
![Page 26: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/26.jpg)
Year 4:
DRFI
![Page 27: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/27.jpg)
DIALOGUE
Min. FinanceDisaster Risk?
Funder Stakeholders
![Page 28: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/28.jpg)
Min. Finance will pay each year a premium of
$ ___
The insurer will deliver to Min. Finance
a payout of $ ___, immediately after
the occurrence of a Hurricane
making landfall in your country.
__________Name and Signature
(Minister of Finance)
INSURANCE CONTRACTPay annual premium. Payout if disaster
1
8
![Page 29: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/29.jpg)
Bank will give a total of $ ____, in case of
occurrence of the following extreme event: [describe verifiable event]
Min of Finance will repay the Loan, as follows:Year 1: $ ___
Year 2: $ ___
Year 3: $ ___
Year 4: $ ______
Year 5: $ ______
Year 6: $ ______
CONTINGENCY LOAN“Borrow right after shock, Repay later”$
1111 or 21 or 2 __________
Name and Signature
(Minister of Finance)
1 or 2
![Page 30: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/30.jpg)
Consult: ~7 minutes
Submit signed form to facilitator before deadline.
WHAT FINANCIAL INSTRUMENT ?
$
![Page 31: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/31.jpg)
While Funder reviews submission:
Form Mixed Trios: reflect on decisionsGroups of 3 players from different tables & different ministries
After break, each Trio will briefly share
-One emotion
-One insight
Then: one more round!If you’re back on time ☺
![Page 32: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/32.jpg)
WHAT FINANCIAL INSTRUMENT ?
$
Each trio reflect & share:
- One emotion
- One insight
“Pinky Finger” to choose who speaks for group
One more round
![Page 33: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/33.jpg)
Min. Finance will pay each year a premium of
$ ___
The insurer will deliver to Min. Finance
a payout of $ ___, immediately after
the occurrence of a Cat. ___ Hurricane or greater
making landfall in your country.
__________Name and Signature
(Minister of Finance)
INSURANCE CONTRACTPay annual premium. Payout if Disaster
1
8
3
10
2
2
![Page 34: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/34.jpg)
Pay $ __ per year for reserve fund.
Donor will match with $ __
A country may draw up to $ __ from the Fund if[describe event]
__________Name and Signature
(Minister of Finance)
REGIONAL RESERVE FUNDAll put money in, use when needed
1
![Page 35: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/35.jpg)
Pay $ __ for Administrative Reform that allows
‘Partial Reappropriation’
If Relevant Stakeholders Agree:
-Surplus can become 1 coin for Min. Finance
-Assets can be traded in Market__________Name and Signature
(Minister of Finance)
PARTIAL REAPPROPRIATIONSwap Budget/Assets Across Sectors
1
$
![Page 36: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/36.jpg)
Bank will give a total of up to $ ____, in case of
occurrence of the following extreme event: Declaration of National Emergency
Agreed Set of Prior Actions
Development of DRM Framework
Min of Finance will repay the Loan, as follows:Year 1-3: No payment
Year 4-10 $1m per year (IDA covers the rest)
_________________
Name and Signature
(Minister of Finance)
CAT DDO
6
![Page 37: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/37.jpg)
Facilitate:
Form groups with similar questions
- Insurance?
- Cat DDOs?
- Contingency Funds?
- Partial Reappropriation?
- Reserve Fund?
- Other?
Then enable small-group discussion / Q&A
![Page 38: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/38.jpg)
Before Total: 97 terms After Total: 125 terms
![Page 39: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/39.jpg)
DISASTER RISK FINANCING AND INSURANCE PROGRAM (DRFIP)
Five Steps Towards Strengthening Financial Resilience
1• Take Stock of how disaster response is currently financed
2•Gather risk information / carry out risk assessments
3•Decide on policy priorities
4•Build financial protection strategy
5•Work with and improve existing processes for DRF
![Page 40: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/40.jpg)
MATERIALS
![Page 41: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/41.jpg)
Tax?
G
et
2 c
oin
s
Aid
? S
pen
d c
oin
s
JAN FEB MAR APR MAY JUN
JUL AUG SEP OCT NOV DEC
covered
Need Need Need
DEFICIT?
Lose Asset
SURPLUS?
Gain +1 Asset
Transport
covered covered covered covered covered
covered covered
Su
rplu
s?
B
uy 1
Asset
Defi
cit
? S
ell
1 A
sset
MA
RK
ET
![Page 42: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/42.jpg)
JAN FEB MAR APR MAY JUN
JUL AUG SEP OCT NOV DEC
Need Need Need
DEFICIT?
Lose Asset
JAN FEB MAR APR MAY JUN
JUL AUG SEP OCT NOV DEC
Need Need Need Need
DEFICIT?
Lose Asset
Emerg.
Tourism
JAN FEB MAR APR MAY JUN
JUL AUG SEP OCT NOV DEC
Need Need Need Need
DEFICIT?
Lose Asset
Food
covered covered covered covered covered covered
covered
covered covered covered covered covered covered
covered
covered covered covered covered covered covered
covered
SURPLUS?
Gain +1 Asset
SURPLUS?
Gain +1 Asset
SURPLUS?
Gain +1 Assetcovered
![Page 43: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/43.jpg)
HURRICANE
CATEGORYMILD DAMAGE
Assets disabled one round
5
4
3
2
1
$
$
$ $
SERIOUS DAMAGEAsset Recovery: $1
![Page 44: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/44.jpg)
FinLoans, Inc.“Borrow Now, Repay later”
(with interest)
$
Creditor will give a total of $ 5m
Min of Finance must repay the Loan, as follows:Year 1: $ 1m
Year 2: $ 1m
Year 3: $ 2m
Year 4: $ 2m
Year 5: $ 2m
Year 6: $ 2m
If Min. Finance can’t repay, Creditor will take possession of 2 assets
__________Name and Signature
(Minister of Finance)
![Page 45: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/45.jpg)
Min. Finance will pay each year a premium of
$ ___
The insurer will deliver to Min. Finance
a payout of $ ___, immediately after
the occurrence of a Cat. ___ Hurricane or greater
making landfall in your country.
__________Name and Signature
(Minister of Finance)
INSURANCE CONTRACTPay annual premium. Payout if disaster
1
8
3
![Page 46: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/46.jpg)
Min. Finance will pay each year a premium of
$ ___
The insurer will deliver to Min. Finance
a payout of $ ___, immediately after
the occurrence of a Cat. ___ Hurricane or greater
making landfall in your country.
__________Name and Signature
(Minister of Finance)
INSURANCE CONTRACTPay annual premium. Payout if disaster
2
10
2
![Page 47: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/47.jpg)
Bank will give a total of $ ____, in case of
occurrence of the following extreme event: [describe verifiable event]
Min of Finance will repay the Loan, as follows:Year 1: $ ___
Year 2: $ ___
Year 3: $ ___
Year 4: $ ______
Year 5: $ ______
Year 6: $ ______
CONTINGENCY LOAN“Borrow right after shock, Repay later”$
1111 or 21 or 2 __________
Name and Signature
(Minister of Finance)
1 or 2
![Page 48: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/48.jpg)
Bank will give a total of up to $ ____, in case of
occurrence of the following extreme event: Declaration of National Emergency
Agreed Set of Prior Actions
Development of DRM Framework
Min of Finance will repay the Loan, as follows:Year 1-3: No payment
Year 4-10 $1m per year (IDA covers the rest)
_________________
Name and Signature
(Minister of Finance)
CAT DDO
6
![Page 49: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/49.jpg)
Pay $ __ for Administrative Reform to allow
‘Partial Reappropriation’ for disaster risk mgmt
If Relevant Stakeholders Agree:
- Exchange Surplus for 1 coin to Min. Finance
- Assets can be traded in Market__________Name and Signature
(Minister of Finance)
PARTIAL REAPPROPRIATIONReallocate Budget/Assets Across Sectors
$
1
![Page 50: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/50.jpg)
Pay $ __ per year for reserve fund.
Donor will match with $ __
A country may draw up to $ __ from the Fund if[describe event]
__________Name and Signature
(Minister of Finance)
REGIONAL RESERVE FUNDAll put money in, use when needed
1
![Page 51: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/51.jpg)
GO GO GO GO
GO TURN GROWGROW
![Page 52: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/52.jpg)
Ca
ribb
ea
n
Dis
as
ter R
isk
Fin
an
cin
g
Tech
nic
al A
ssis
tan
ce P
rog
ram
Carib
bean
Dis
as
ter R
isk
Fin
an
cin
g
Tech
nic
al A
ssis
tan
ce P
rog
ram
Ca
ribb
ea
n
Dis
as
ter R
isk
Fin
an
cin
g
Tech
nic
al A
ssis
tan
ce P
rog
ram
Ca
ribb
ea
n
Dis
as
ter R
isk
Fin
an
cin
g
Te
ch
nic
al A
ss
ista
nc
e P
rog
ram
Ca
ribb
ea
n
Dis
as
ter R
isk
Fin
an
cin
g
Tech
nic
al A
ssis
tan
ce P
rog
ram
Ca
ribb
ea
n
Dis
as
ter R
isk
Fin
an
cin
g
Te
ch
nic
al A
ss
ista
nc
e P
rog
ram
Ca
ribb
ea
n
Dis
aste
r Ris
k F
inan
cin
g
Tech
nic
al A
ssis
tan
ce P
rog
ram
Ca
ribb
ea
n
Dis
as
ter R
isk
Fin
an
cin
g
Tec
hn
ica
l As
sis
tan
ce
Pro
gra
m
![Page 53: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/53.jpg)
OTHER
![Page 54: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/54.jpg)
Speed matters, but not all resources are needed at once.
Sh
ock
Resource
Requirements [$]
Can we reduce total resources needed, while accelerating availability of funds?
Core Principle 1: Timeliness of funding
![Page 55: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/55.jpg)
Core Principle 1: Timeliness of funding
Sh
ock
Sig
nal o
f L
ikely
Sh
ock
Early
Action
FORECAST-BASED FINANCING: Trigger resources for
early action before the shock, after science says
an extreme event is unusually likely
Resource
Requirements [$]
Time
![Page 56: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/56.jpg)
Tax?
G
et
2 c
oin
s
Aid
? S
pen
d c
oin
s
JAN FEB MAR APR MAY JUN
JUL AUG SEP OCT NOV DEC
covered
Need Need Need
DEFICIT?
Lose Asset
SURPLUS?
Gain +1 Asset
covered covered covered covered covered
covered covered
Su
rplu
s?
B
uy 1
Asset
Defi
cit
? S
ell
1 A
sset
MA
RK
ET
![Page 57: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/57.jpg)
JAN FEB MAR APR MAY JUN
JUL AUG SEP OCT NOV DEC
Need Need Need Need
DEFICIT?
Lose Asset
JAN FEB MAR APR MAY JUN
JUL AUG SEP OCT NOV DEC
Need Need Need Need
DEFICIT?
Lose Asset
JAN FEB MAR APR MAY JUN
JUL AUG SEP OCT NOV DEC
Need Need Need Need
DEFICIT?
Lose Asset
covered covered covered covered covered covered
covered
covered covered covered covered covered covered
covered
covered covered covered covered covered covered
covered
SURPLUS?
Gain +1 Asset
SURPLUS?
Gain +1 Asset
SURPLUS?
Gain +1 Asset
![Page 58: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/58.jpg)
![Page 59: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/59.jpg)
![Page 60: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/60.jpg)
![Page 61: Hurricane Hurry - Understanding Risk · 2020. 2. 5. · up to $ ____, in case of occurrence of the following extreme event: Declaration of National Emergency Agreed Set of Prior Actions](https://reader034.fdocuments.in/reader034/viewer/2022052021/603555566265f604b06bde17/html5/thumbnails/61.jpg)