Thinking impact before instruments in humanitarian disaster risk financing

By Fatima Khonat

A new series of technical discussion papers announced today at the 7th Global Dialogue Platform by the Start Network, the Red Cross Red Crescent Climate Centre and the International Federation of Red Cross and Red Crescent Societies explores how evolving disaster risk financing (DRF) approaches could be a game-changer in acting earlier, quicker and more effectively to predictable humanitarian crises.

Redefining how the current DRF system meets humanitarian objectives, the series builds on the practical experience of the Start Network and IFRC and calls for a move from the traditional DRF sovereign approach to a more human-impact driven approach to risk financing, identifying the financial and operational needs from the ground up in an ‘impact before instruments approach.’

Each paper in the series explores the need for a renewed approach whilst identifying some of the technical challenges and posing solutions to make disaster risk financing work most effectively in the humanitarian context. They aim to ignite dialogue and build collaboration around key technical challenges whilst highlighting some key solutions to unlock the potential of DRF for humanitarian action.

The six-part series is as follows:

1.  Thinking Before Instruments in Humanitarian Disaster Risk Financing

2. People-centred and Transparent Risk Analytics 

3. Early Action Planning, Contingency Planning and Coordination

4. Accountability, Transparency and Participation

5. Preparedness Resources

6. Matrix of Instruments and Funds

DRR System Capacity Recommendations 

The discussion paper outlines some DRR system capacity recommendations for humanitarian actors, governnments and stakeholders summarised below: 

• The DRR and preparedness window of the disaster risk management continuum needs to be   considered an integral part of DRF financing

• These systems must not be designed to entrench silos, for example   with financing, data analysis and implementation performed separately

• The leadership and all those involved   in the system need to be open to failing, but “failing forward” with the political space to allow for   reflection and improvement

• Shift mindsets towards a holistic management of risk across all disaster risk management windows.