Question
Disaster risk finance, insurance and risk transfer are essential financial
strategies for managing the economic impacts of disasters”. Examine.
Answer :
Word Count : 587
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Disaster risk finance, insurance and risk transfer are important financial strategies that help societies manage the economic consequences of disasters. Disasters such as floods, earthquakes, cyclones, droughts and industrial accidents often cause massive losses to infrastructure, livelihoods, property and public resources. The increasing frequency and intensity of disasters due to climate change have made financial preparedness an essential component of disaster management. These strategies provide mechanisms for reducing economic vulnerability and ensuring faster recovery after a disaster. Disaster risk finance refers to the planning and arrangement of financial resources before a disaster occurs so that funds are available for emergency response, relief and reconstruction. Traditionally, governments have relied on post-disaster assistance and budget reallocations to manage losses. However, such approaches often create delays and increase financial pressure on public
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