This article from the UNDRR (United Nations Office for Disaster Risk Reduction) explores the need to finance prevention activities globally, internationally and nationally. In response to the economic risk of rapidly rising disaster losses.
The article explores the key challenges associated with de-risking investment in prevention and sets out the rationale and economic case for investing in prevention to mitigate loss, claiming that: “Global investments of €1.6 trillion in appropriate disaster risk reduction strategies could avoid losses of €6.4 trillion”.
The article recommends shifting investment decisions to increase finance for risk prevention under three key areas:
1. Overhauling regulation and oversight
2. Building the evidence to enable evidence-based decision making
3. Innovation in funding models