From principles to practice: Financing disaster risk reduction and residual risk

This report examines how financing disaster risk reduction and residual risk operates within national disaster risk management (DRM) policy frameworks. Using document analysis methodology, the research reviews DRM legislation, strategies, and plans in South Africa, Tonga, and Pakistan, supplemented by disaster risk financing (DRF) strategies from ten additional countries. Sources include national adaptation plans, nationally determined contributions, and public policy documents.

The key findings highlight that although policy frameworks endorse coordination between disaster risk reduction and PAF, integration is weak in practice. Analytical gaps in risk metrics and contingent liability limit strategy effectiveness, and costing and value for money analyses are rarely applied, hindering political commitment and realistic planning. The report recommends stronger coordination of strategies, improvement of quantified risk metrics, clearer definition of contingent liabilities, systematic costing of plans, joint consideration of financing for disaster risk reduction and PAF, and enhanced cooperation among governments, development partners, civil society, and other DRM stakeholders. Greater integration and leveraging the symbiotic relationship between disaster risk reduction and residual risk financing are critical to maximizing resilience gains from available funding.