Risk management and sustainable livelihoods

Risk Management is a systematic way of protecting the individual/business enterprise resources and income against losses. The aim is of promoting new or protecting existing livelihoods from all potential sources so that the security within the system is enhanced. Protection from vulnerability – shocks, trends and seasons needs to planned and integrated in to the livelihoods promotion process itself. Unless livelihoods promoting agencies and professionals are aware and sensitive to the risk management needs no enterprise or programs will sustain.

The concept of risk and risk management are core to any business enterprise. Not only enterprises but both rural and urban poor face certain type of risks in their livelihood. The poor in general are more vulnerable than the rest of the population to varied type of risks. Risks such as agricultural looses, market instability, natural disasters, illness, death, occupational uncertainties and others are common for the poor. These risks impact their regular flow of income and their ability to build income generating assets. However, the poor manage their risk using three different strategies – risk diversification, mitigation and reduction. Of late there is a great emphasis on insurance which is a risk mitigation strategy. This option is costly and usually responses to claims are difficult due to inaccessibility of the poor. The poor commonly use risk diversification and risk reduction strategies to manage their risks.

Innovations in risk management are visible across the world. This program will discuss emerging instruments like portfolio management and traditional practices like multiple livelihoods options which ensure risk diversification. The other important dimension to be discussed is of mutual insurance instruments which are developed as a local innovation in community enterprises.

Objectives:

The overall objective of training is to address the rural and urban poor risk at household and livelihoods levels. The focus is to address the vulnerability caused by the agriculture losses, improper decision making process at household and community level, market instability, losses due to natural disaster, illness and wage loss. The overall objective is to sensitize the participants about the risk management practices for existing /emerging livelihoods of poor.

The expected outcomes of training are:
1. To develop clear understanding of livelihood risk & vulnerability in development context.
2. To enhance skills in designing program strategies to better cope with risks of poor.
3. To help develop capacities related to business planning and enterprise risk management for promoting livelihoods of poor.  

Pedagogy:

The training will be conducted using a mix of participatory learning tools and conventional lecture methods. Predominant learning tool will be case studies for illustrating the theory and practice within the risk management domain. Interactive group works and role-plays will ensure that the participants get opportunity to apply and reason the various dimensions of the concepts.

Resource persons:

Professionals with experience of 8 – 10 years in enhancement of livelihoods of poor (especially the urban poor), qualified from Asian Institute of Technology, Thailand, Institute of Rural Management, Anand ,Xavier Institute of Management, Bhubaneswar (XIMB)and other major management institutes will undertake the training.