Areas of Work
Climate change is increasing the frequency and severity of disasters in many regions. Increasing vulnerability tends to require long-term investment and production adjustments and can magnify the need for risk financing mechanisms. Interestingly, many regional climate anomalies can be forecast (e.g., extreme flooding and drought) with an increasing degree of accuracy.
Geographically concentrated financial institutions are vulnerable to highly correlated natural disaster risks. Natural disasters deplete the capital of financial institutions, reducing their ability to lend after an event and so delaying recovery. It is in this same post-event period when communities need credit most to rebuild.
International investment in food systems has increased value-added production and participation in international markets for small and medium enterprises (SMEs) in developing and emerging economies. Despite this progress, many SMEs are excluded from international value chains due to risk.
The effectiveness of emergency humanitarian aid is greatly determined by its timeliness and the resources available to first responders. As a result, human and economic losses increase due to delays in organizing funding and the delivery of in-kind support through supplies which may not meet on-the-ground needs.