C. Performance Analysis of Existing Disaster Risk Management Mechanisms


Disaster risk management is the application of DRR policies and strategies to prevent new disaster risk, reduce existing disaster risk and manage residual risk, contributing to the strengthening of resilience and reduction of disaster losses (United Nations General Assembly, 2016).

Brief Description

The DRM performance analysis is most effective after the risk and impact assessments have been carried out. The latter provides data on the most important weather-related risk and its impacts, which is needed to manage and evaluate the DRM mechanisms. The analysis determines the effectiveness, affordability, feasibility, applicability, scalability and sustainability of applied DRM mechanisms defined (see box 2). The outcome identifies protection gaps and selects the most suitable DRM solutions, formulates policies and contingency plans, sets priorities for vulnerability reduction, and identifies key governmental and other stakeholders.

Effectiveness is the degree by which the risk of a disaster or weather-related event was reduced. It also refers to the timeline of a sector or society to recovery and return to its status and functions as before the event.

Affordability refers to the amount of finance needed for the activities to overcome the effects of the extreme weather events, especially when compared with the amount to be spent when coping with the shock of deriving to a position to restart/continue the business (is the proposed solution to put into action affordable?).

Feasibility is the degree to which the proposed DRM solution(s) are easy to implement in the short-to-medium term.

Applicability can be divided between the public and the private sectors. The following questions need answering: is the proposed solution in line with existing agricultural policy and programmes and priorities (public sector)? Is the proposed solution in line with current and existing business objectives (private sector)?

Scalability of implementation refers to the easiness of the proposed solution to scale up and make the solution available to an increased number of users.

Sustainability of the proposed solution in the long term.

Involved Actors

At the national level, governments should conduct the analysis, led by the MoA for the agricultural sector and involving the Ministry of Finance and other relevant government agencies such as transport, energy, and rural development, and departments dealing with climate change adaptation, response and recovery. At the local level the respective local government is involved to gather information from farming households, SMEs and their member organizations (e.g. business associations), and NGOs or international development organizations.


Calculating economic benefits of used DRM mechanisms (including insurance products)

Governments, and the private sector, have a decision-making tool at hand for cost-benefit assessments of existing DRM mechanisms and to calculate potential economic advantages for buying insurance compared to costs spent for prevention, preparedness and post-disaster response and recovery.

Gaps identification for potential
insurance products

The DRM analysis provides information on protection gaps that may be closed by insurance solutions. It helps identify insurance products for extreme weather events that cannot be prevented or prepared for.

Integrating insurance into comprehensive DRM

The DRM analysis shows how insurance, if it is an option, could be most suitably integrated into a DRM cycle for strengthening resilience.