Which of the following statements are true:
A. Risk transfer refers to instruments that share or hedge economic risks before losses occur.
B. Disaster Risk Management includes the areas of risk identification, risk reduction and transfer, adverse event management and recovery.
Which of the following statements are true:
A. Risk transfer refers to instruments that share or hedge economic risks before losses occur.
B. Disaster Risk Management includes the areas of risk identification, risk reduction and transfer, adverse event management and recovery.
The correct option is C Both A and B
Risk Transfer refers to instruments that share/hedge
economic risks before losses occur. Examples include: Budget self-insurance, Market
Insurance and Reinsurance, Public asset coverage, Risk pooling and
diversification and Risk financing.
DRR is a part of sustainable development, so it must involve
every part of society, government, non-governmental organizations and the
professional and private sector. It therefore requires a people-centered and
multi-sector approach, building resilience to multiple, cascading and
interacting hazards and creating a culture of prevention and resilience.
Consequently DRM includes strategies designed to:
- Avoid the construction of new risks
- Address pre-existing risks
- Share and spread risk to prevent disaster losses being
absorbed by other development outcomes and creating additional poverty
Risk Transfer refers to instruments that share/hedge economic risks before losses occur. Examples include: Budget self-insurance, Market Insurance and Reinsurance, Public asset coverage, Risk pooling and diversification and Risk financing.
DRR is a part of sustainable development, so it must involve every part of society, government, non-governmental organizations and the professional and private sector. It therefore requires a people-centered and multi-sector approach, building resilience to multiple, cascading and interacting hazards and creating a culture of prevention and resilience. Consequently DRM includes strategies designed to:
- Avoid the construction of new risks
- Address pre-existing risks
- Share and spread risk to prevent disaster losses being absorbed by other development outcomes and creating additional poverty
