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Effective
Successful
&
Inclusive
Risk-Management
Risk management (RM) as a concept has
been discussed widely within, but notexclusively, 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
effects. The natural disasters, economic
crises, uneven development, among
others, have been posing significant
threat to people all around the world, as
well as the international system in
general. RM is therefore absolutely
necessary and it has two main aims.
PRODUCING RESILIENCE
ability to mitigate losses from adverse
shocks and to foster the economy
ACHIEVING PROSPERITY
by improving benefits from pursuing
opportunity
While these terms might sound vague, in
reality, the complexity of RM engages
various stakeholders which cooperate in a
matter which allows them to tackle the
problems and to be successful in pursuing
a common goal of healthy, prosperous
and opportunity-rich society.
RISK
MANAGEMENT(final project by Denisa Mockova; sources: World Bank material, flickr, google)
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WHY IS RISK
MANAGEMENT SO
ESSENTIAL ?
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
if RM does not engage properly, the
circulation of shock - (lack of)
response/even deeper poverty -
vulnerability - shock at even bigger
scale, will be as a vicious circle,
where there is no way out
Sustainable Development goeshand in hand with Risk
Management at all levels
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WHAT DOES EFFECTIVE,SUCCESSFUL & INCLUSIVE RISK-
MANAGEMENT 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
acquiring knowledge- we look for quality of information and access to it
obtaining protection- protection as essential component of security
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 after-
disaster management of the
ground
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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
ch of them is very specific and requires different interactions in order to facilitate the
al aims
think about risk chain: the
nteraction 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
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LESSONS LEARNED
ccessful inclusive & effective Risk Management requires involvement of all the actors and stakeholders. If we are about to
hieve a win-win situation, meaning managing the risks while at the same time enhancing the development, we must take
o consideration all those factors mentioned above. They should flow harmonically among themselves and make a beautifu
whole as a part of risk management strategy for all the generations.
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