The R!SE Initiative is structured around 8 Activity Streams with the aim to deliver tools, recommendations and good practice to implement comprehensive disaster risk management for investments. The preliminary work described in the background has identified 8 streams of improvement which can be materialized through concrete projects and activities and transformed into outcomes to create shared value. Each Activity Stream has been developed to welcome a number of other contributors interested in bringing expertise, knowledge, experience as well as financial resources.
Please, tour around the visual for more information on the Activity Streams and the leaders in charge of the coordination of the projects.
Activity Stream 1 will support the private sector in developing improved disaster risk management capacities.
By 2020, 100 global businesses will be in the position to make disaster risk-sensitive investment decisions based on relevant risk metrics and risk management information.
This Activity Stream led by PwC is designed to improve the private sector’s disaster risk management capabilities. The Disaster Risk Management Framework (DRM-F) developed by PwC in collaboration with UNISDR and 14 large corporations in 2012, will be further enhanced and provides the foundation to identify common DRM areas of interest and challenges across the private sector
The R!SE Initiative will provide the safe environment, from an intellectual property (IP) and reputation perspective, which will allow the private sector to share knowledge openly and effectively with peers. The community of companies in this Activity Stream will jointly prioritize commonly identified DRM areas of interest and challenges. Based on these, the DRM-F will be used as a backbone to achieve three objectives:
- Identify global business good practices that address prioritized DRM areas of interest and challenges.
- Leverage these good practices to improve understanding of global business’ direct and indirect exposure across the value chain, and identify short and long term preventive actions to minimize them.
- Develop and apply business benchmarking tools across the Alliance to help global business improve the understanding of their overall exposure and mature their DRM actions.
Activity Stream 2 will support the development of improved risk metrics for business and economic forecasting.
By 2020, this Activity Stream will have developed revised metrics to quantify disaster risk for economic policy and corporate planning, tested in at least 20 country contexts.
This Activity Stream led by The Economist Intelligence Unit (EIU) will develop a disasterspecific risk model which leverages its experience in developing country-level operational risk ratings. The model will score countries based on the likelihood that, in the occurrence of a disaster, their business operating environment will suffer disruptions. This analysis will capture issues such as countries’ level of preparedness, capacity to recover and exposure of GDP to disasters.
The aim of this Activity Stream is also to work towards developing a framework to systematically factor disaster risk into investment decisions and corporate planning. With an ambitious end-goal of developing disaster risk-specific discount rates at a country-level, the EIU will explore the development of a framework to allow disaster risk metrics such as Annual Average Loss (AAL) and Probable Maximum Loss (PML), available from the UNISDR Global Risk Model, to be factored into investment decisions.
DRM industry standards
Activity Stream 3 will support the development of voluntary industry standards for disaster risk management (DRM).
By 2020, 10 industry sectors adopt voluntary DRM standards and certification.
This Activity Stream led by PwC is designed to improve private and public sector disaster risk management capabilities through voluntary industry standards. This Activity Stream will be highly strategic in that it can influence and strengthen social demand for disaster risksensitive products, ranging from cities, tourist destinations, agricultural products and others, and thus establish disaster risk management as a strong value proposition for business by building trust in markets for new products and services that contribute to disaster risk reduction at a local level.
This Activity Stream will engage with interested corporations, industry sector bodies, public sector regulatory bodies as well as organizations producing rankings, indexes and indicators to explore and develop innovative approaches to voluntary industry standards for disaster risksensitive investment.
Furthermore, this Activity Stream will select products and services that are risk-sensitive based on geographical location, industry and demand and identify DRM voluntary industry standards options for pilot projects (in collaboration with Activity Streams 1 and 6).
DRM higher education
Activity Stream 4 will support academic institutions, training centers and courses, and business associations in improving their curricula on business risk management.
By 2020, in three global regions, at least 10 leading business schools will offer new and/ or enhanced disaster risk management (DRM) courses or modules in their MBA-type programs, and at least 10 training or business education providers will offer cutting-edge DRM content, methodologies, and ready to use tools and/or software to business leaders in large, medium, and small enterprises.
This Activity Stream led by FIU will integrate the following three components into a coherent and values-based DRM approach: business continuity (BC), corporate social responsibility (CSR), and disaster risk reduction (DRR).
One sub-stream will focus on strengthening MBA-type curricula and instructional faculty in business schools by assisting in the creation of state-of-the-art DRM courses and modules aimed at the “next generation” of business leaders, particularly those heading toward the increasingly important position of Chief Risk Officer (CRO). The other sub-stream will focus on more immediate private sector impacts by working with training institutions, professional associations, chambers of commerce, and/or university outreach programs to provide short duration, intensive, and practically oriented courses. The participation targets will not be restricted to executives in large companies, which normally have DRM multiplier effects through their respective supply chains, but also leaders and owners of medium and small enterprises concerned about post-disaster business survival, timely recovery, and long-term sustainability.
Activity Stream 5 will engage major institutional investors such as sovereign wealth and pension funds to consider disaster risk in their investment portfolios.
By 2020, 1000 asset owners and investment managers supported principles for disaster risk-sensitive investments as part of their ongoing commitment to responsible investment.
This Activity Stream led by PRI will commit to improving existing principles and regulations for responsible investment and sustainable management of investment funds and to explore the opportunity for incorporating metrics and principles that discourage investments which increase disaster risk. For example, the United Nations-supported Principles for Responsible Investment (PRI) have been developed to improve the understanding and practice of investors in relation to sustainability issues such as sound environmental management, social responsibility and development, and corporate governance.
More than 1000 asset owners and investment managers as signatories to the PRI already agree that the consideration of these issues in investment decision-making can positively affect the performance of investment portfolios as well as contribute to their mid- to long-term sustainability. As such, the incorporation of relevant risk metrics into the existing principles will further contribute to these objectives. This Activity Stream will produce concrete guidance (either in the form of principles or standards) for the investment community on assessing and managing the risk of disaster impacts to their investment portfolio as well as the levels of disaster risk that these portfolios may generate over time and space.
Activity Stream 6 will support local business communities and government departments to increase disaster resilience in their municipalities and cities.
By 2020, this Activity Stream will apply a quantitative “Resiliency Scorecard” to measure city-level disaster preparedness and resilience as well as a toolkit to facilitate publicprivate sector engagement on disaster risk reduction, response planning and recovery. Pilot projects and dialogues in at least 50 municipalities will have brought together leaders from the public and private sectors to jointly reduce disaster risk, improve disaster response planning and take steps to accelerate recovery and build resiliency.
This Activity Stream led by AECOM will build on the results of previous collaboration in the form of a city Resiliency Scorecard that functions as a citylevel benchmarking tool for preparedness. The Resiliency Scorecard was jointly developed by IBM and AECOM and is based upon the “Making My City Resilient” campaign’s “Ten Essentials”.
The Resiliency Scorecard will be initially tested and issued on the UNISDR website in 2014. While it is a tool that cities can use to benchmark their present level of preparedness and create roadmaps to improve, in this Activity Stream it is taken as a starting point to improve municipal risk-sensitive planning and to facilitate public-private sector working groups that jointly address gaps in disaster risk management. Previous experience of the Dutch government and private sector in connecting public and private entities responsible for critical infrastructure in risksensitive cities will feed into this Activity Stream and provide support in developing consistent and consensus-based methodologies and recommendations at the city level.
Activity Stream 7 will increase access to optimal and sustainable disaster insurance to the wider global community, particularly in emerging economies.
By 2020, 50 businesses will have benefited from access to improved insurance capacity and 200 (re-) insurers will have revised the pricing of risk based on state-of-the-art risk data.
This Activity Stream led by Willis will support the aspiration that everyone possible should have access to the benefits of sustainable and effective insurance. It will further support the correct pricing of risk and the development of insurance incentives for disaster risk reduction.
Insurance enables populations to understand, manage and share risk at local and global scales, through public, private and mutual mechanisms: insurance is the ultimate community product. Insurance translates science into sustainable risk frameworks; informs safe public policy, guides widespread risk-sensitive rules, codes and behaviours and provides support and care at times of loss.
When risk is priced correctly and incentives for risk reduction are built in, insurance saves lives and livelihoods. However, levels of disaster insurance remain inadequate in both developing and developed countries, insurance recoveries are often a fraction of disaster losses. In response to growing disaster risks and need for resilience, this lack of vital coverage must change.
DRM in the United Nations
Activity Stream 8 will be developed to facilitate joint learning in support of the United Nations system’s efforts in building resilience to disasters and climate risks. It will be an opportunity to exchange lessons from practical experience of the public and private sector and access relevant tools and instruments developed in R!SE.
By 2020, new risk information, risk management tools and good practice from the private sector will have been shared, on demand, with organisations of the UN system.
This Activity Stream will be developed over the next years, in collaboration with interested organisations in the United Nations. It is proposed that through an exchange with the companies and expert institutions active in the other Activity Streams, lesson learned can be shared in support of the resilience of the UN system. Good practices in disaster and climate risk management and risk information can be made available through this Activity Stream to strengthen the resilience and sustainability of its operations in times of crisis.
The aim is to allow for findings and tools from the other 7 Activity to be shared by private sector and academic partners of R!SE on demand and closely aligned with existing UN-wide efforts and programmes in resilience building. Relevant management bodies and agencies within the UN will be consulted in developing this Activity Stream to ensure that all proposed actions are connected with ongoing risk management processes across the UN system.
PwC helps organizations and individuals create the value they’re looking for. It is a network of firms in 158 countries with more than 180,000 people who are committed to delivering quality in assurance, tax and advisory services. PwC has extensive experience working with the private sector, investors and government policymakers. Its global network of firms draws on expertise in enterprise risk management, actuarial modelling, climate risk, business operations improvement and supply chain optimization. PwC helps organizations develop and implement tools and methods to mitigate and prevent disaster risk.
The Economist Intelligence Unit
The Economist Intelligence Unit (EIU) is the business-to-business arm of The Economist Group, which publishes The Economist Newspaper. Like The Economist, EIU is known for having a global perspective, accurate analysis, objective thinking, business acumen and influential opinions and is the world’s foremost provider of country, industry and management analysis. Today EIU has over 150 full-time country specialists and economists supported by an unparalleled global network of 650+ contributing analysts and editors. Operating in virtually every country and covering every developed and emerging market.
Florida International University
Florida International University (FIU) has created an Extreme Events Institute (EEI) whose goal is research synergy across the social and behavioral sciences, physical sciences, computer science, public health, management, and engineering in the multi-hazard study of extreme events and responses to them. The EEI structure is intended to foster inter-disciplinary and trans-disciplinary research.
Principles for Responsible Investments
The United Nations-supported Principles for Responsible Investment (PRI) initiative has quickly become the leading global network for investors to publicly demonstrate their commitment to responsible investment by collaborating and learning with their peers to put the six Principles for Responsible Investment into practice. Its goal is to understand the implications of sustainability for investors and support signatories to incorporate these issues into their investment decision making and ownership practices. In implementing the Principles, signatories contribute to the development of a more sustainable global financial system.
AECOM is a global provider of professional technical and management support services to a broad range of markets, including transportation, facilities, environmental, energy, water and government. With approximately 45,000 employees around the world, AECOM is a leader in all of the key markets that it serves. AECOM provides a blend of global reach, local knowledge, innovation and technical excellence in delivering solutions that create, enhance and sustain the world’s built, natural and social environments. A Fortune 500 company, AECOM serves clients in approximately 125 counties.
Willis is a leading global risk adviser, insurance and reinsurance broker. With roots dating to 1828, Willis has a long history of helping clients avoid, control, mitigate and transfer risks. Willis operates today on every continent with more than 17,500 employees in over 400 offices. Willis’ experts rank among the world’s leading authorities on analytics, modelling and mitigation strategies at the intersection of global commerce and extreme events. Across geographies, industries and specialisms, Willis provides its local and multinational clients with resilience for a risky world.
The R!SE Initiative operates under the umbrella of the United Nations, coordinated by the United Nations Office for Disaster Risk Reduction (UNISDR) and supported by the United Nations Office for Project Services (UNOPS).
The United Nations Office for Disaster Risk Reduction
UNISDR coordinates disaster risk reduction across the UN system. Established in 1999, it is mandated by the UN General Assembly to ensure the implementation of the International Strategy for Disaster Reduction and its international policy framework, the Hyogo Framework for Action (HFA), adopted by the World Conference on Disaster Reduction in Japan in January 2005.
The United Nations Office for Project Services
UNOPS has a key role as a central resource for the United Nations system in procurement and contracts management as well as in civil works and physical infrastructure development, including the related capacity development activities. UNOPS acts as a service provider to various actors in the development, humanitarian and peacekeeping arenas, including the United Nations, its agencies, funds and programs, donor and recipient governments, intergovernmental organizations, international and regional financial institutions, nongovernmental organizations, foundations and the private sector.