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Global Assessment Report on Disaster Risk Reduction 2013
From Shared Risk to Shared Value: the Business Case for Disaster Risk Reduction |
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230 Part III - Chapter 15
play an important role in reducing vulnerability and exposure to physical hazards.
As identified in Chapter 14, however, the potential for prospective risk management is limited because those parts of government promoting investment rarely participate in national disaster risk management platforms or committees. Further, private sector participation is usually restricted to emergency management and preparedness (
Johnson et al., 2012 Johnson, C., Adelekan, I., Bosher, L., Jabeen, H., Kataria, S., Wijitbusaba, A. and Zerjav, B. 2012.,Private Sector Investment Decisions in Building and Construction: Increasing, Managing and Transferring Risks., Background Paper prepared for the 2013 Global Assessment Report on Disaster Risk Reduction., Geneva,Switzerland: UNISDR.. Click here to view this GAR paper. IIHS, 2012 IIHS (Indian Institute for Human Settlements). 2012.,The Role of Private Sector in Reducing Disaster Risk in Large Scale Infrastructure and Real Estate Development, Case of Delhi., Background Paper prepared for the 2013 Global Assessment Report on Disaster Risk Reduction., Geneva,Switzerland: UNISDR.. Click here to view this GAR paper. Countries’ self-assessments reflect this limitation, with only 36 countries out of 94 reporting on the number of private sector bodies represented in their national platforms. Of these 36, 19 countries have only 1-3 private sector representatives. Canada is a notable exception, with 20 private sector representatives; 24 academic institutions; 18 federal departments and agencies, including national finance and planning institutions; 9 provinces and territories; 15 municipalities and 2 representatives of the general public participating in its national coordination platform for disaster risk management.
In their self-assessment of progress against the HFA in 2011–2013, 52 percent of governments report on cooperation with the private sector in emergency preparedness and response. However, only a few describe a more proactive role of private businesses and ex-ante partnerships. Bangladesh, for example, reports investments to create new PPPs for integrated development with a focus on disaster risk reduction. Mauritius has made engagement in disaster risk management compulsory for businesses under a law on corporate social responsibility. Colombia has developed a new disaster risk management framework under which it explicitly sees the private sector as a strategic partner. The United States of America is addressing business interruption and helping to build resilience to disasters through a number of programmes, including ‘Ready Business’.
Interestingly, the number of private sector entities included in national coordinating bodies is highest
in Africa. This means that governments are looking to the private sector for support in disaster risk management, where risk governance budgets are limited and capabilities are weakest.
15.4
Filling the information
vacuum
Revealing the ownership of risk and taking on joint responsibilities among private and public actors is a key step towards effective risk reduction. However, this can only be achieved when disaster risk information is available and accessible to make visible the risks generated by the investment decisions of businesses, governments and households.
The most important area for private sector engagementmay be around hazard information and joint public-private risk assessments. PPPs to manage disaster risk will only be effective when underpinned by open and accessible risk information and disaster loss data. This is in the interest of both governments and businesses, particularly small and medium local enterprises that lack the capacity to undertake their own risk analysis (
Marome, 2012 Marome, W.A. 2012.,Private Sector Investment Decisions in Building and Construction: Increasing, Managing, and Transferring Risks: A Case Study of Thailand., Background Paper prepared for the 2013 Global Assessment Report on Disaster Risk Reduction., Geneva,Switzerland: UNISDR.. Click here to view this GAR paper. Lack of visibility of disaster risk, and clarity over who owns what risk, remains a major barrier to taking risk into account in investment decisions. Disaster losses are often not systematically accounted for; disaster risk information is rarely available to guide either private or public decision-making; and transfer of risk between the private and public sectors and between both and civil society are rarely explicit (UNISDR, 2011
UNISDR. 2011.,Global Assessment Report on Disaster Risk Reduction: Revealing Risk, Redefining Development., United Nations International Strategy for Disaster Reduction., Geneva,Switzerland: UNISDR.. . Kent, 2013 Kent, R. 2013.,Making Futures Real: The policy-makers challenge., Background Paper prepared for the 2013 Global Assessment Report on Disaster Risk Reduction., Geneva,Switzerland: UNISDR.. Click here to view this GAR paper. Kent, 2013 Kent, R. 2013.,Making Futures Real: The policy-makers challenge., Background Paper prepared for the 2013 Global Assessment Report on Disaster Risk Reduction., Geneva,Switzerland: UNISDR.. Click here to view this GAR paper. Of the countries undertaking self-assessments of progress against the Hyogo Framework for Action in 2011–2013, less than half report that national and lo-
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