STEP 5: Developing a DRM plan
A systematic approach would culminate in a (national) DRM plan that would follow a risk-informed DRR strategy with an all-inclusive approach (UNISDR, 2017 Consultative version). The following are core activities to consider:
- Build upon the risk assessment (Phase 1) and, if needed, carry out an in-depth review of prioritized hazards, their frequency and potential impact on fiscal and macroeconomic, long-term sector trends and repercussions, as well as poverty and food security implications.
- Analyse the relevant regulatory and institutional frameworks for the agricultural sector, including the main limitations that prevent local institutions (public and private) from performing effectively in the selected areas (for insurance, see Phase 2 Retention and Transfer).
- Building upon the DRM performance analysis, identify DRM options for specific areas to address the risk management problem and its scope − short to medium term. Highlight linkages with current public policy framework and consider government interventions as well as the potential for market-driven solutions.
- Share the findings with all relevant stakeholders and jointly prepare a comprehensive plan of action, including the following information: activities (including capacity development), responsible institutions, estimated cost, resources needed and timescale. If insurance solutions have been identified to be a part of the DRM plan, it is recommended to include the insurance industry in the DRM performance analysis.
Guiding Questions and Tools
How to develop a (national) DRM plan for the government (including measures protecting population groups [e.g. farmers] and SMEs along the agricultural value chain)?
Which key responsible person(s) and/or institution(s) need to be involved?
UNISDR: 2017 Global Platform for Disaster Risk Reduction: Global forum for strategic advice, coordination, and the review of progress in the implementation of international instruments on disaster risk reduction
IFRC/UNDP (2015): The Handbook on Law and Disaster Risk Reduction
World Bank (2016): Agricultural Sector Risk Assessment − Methodological Guidance for Practitioners. Agriculture Global Practice Discussion Paper 10
GERICS Climate Service Center (2014): Adapting to Climate Change − Methods and Tools for Climate Risk Management. CSC Report 17
UNISDR (2017 Consultative version): National Disaster Risk Assessment − Governance System, Methodologies, and Use of Results
IFRC/UNDP (2015): The Checklist on Law and Disaster Risk Reduction − An annotated outline
IFRC (2010): A practical guide to Gender-sensitive Approaches for Disaster Management
Is there a capacity development plan in place that covers the concept of integrated DRM (including insurance)? If so, for whom are the programmes conceptualized?
Tools and Reference
Multi-/bilateral organizations and (I)NGOs:
Several guidelines mentioned under ‘Tools’ in the respective sections, e.g. World Bank (2016): Agricultural sector risk assessment − methodological guidance for practitioners.
Expected Outputs When Using the Tools
- The inventory of key weather-related events and the related DRM mechanisms provide a systematic overview of the DRM practices of the various actors.
- The cost-benefit analysis (or at least estimations) of the applied DRM mechanisms will enable the government to identify the most suitable DRM mechanisms.
- The list of identified protection gaps enables the government to select the most suitable DRM mechanisms complementing the DRM strategy and indicate a potential demand for insurance.
- A DRM plan is the basis for developing and implementing the most suitable prevention and preparedness measures, disaster risk financing and insurance products as well as response and recovery mechanisms for enhancing resilience of the population, the agricultural private sector and the government.
- Insurance-related outputs (‘Synergies: Insurance and DRM Analysis’).