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Risk management for development--assessing obstacles and prioritizing action.

Stéphane Hallegatte1, Jun Rentschler

  • 1The World Bank, Washington, DC, USA.

Risk Analysis : an Official Publication of the Society for Risk Analysis
|August 27, 2014
PubMed
Summary
This summary is machine-generated.

Effective risk management is crucial for economic development and poverty reduction. This study identifies obstacles to risk management at individual, collective, and governmental levels, offering a policy roadmap for better implementation.

Keywords:
DevelopmentWDR 2014obstaclesrisk managementuncertainty

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Area of Science:

  • Socioeconomic studies
  • Public policy analysis
  • Development economics

Background:

  • Decision-makers face diverse risks (health, financial, environmental) across all development levels.
  • The World Bank's 2014 World Development Report (WDR) analyzed risk management for poverty reduction and prosperity.
  • Proactive, integrated risk management offers opportunities but faces practical implementation challenges.

Purpose of the Study:

  • To present and discuss obstacles to effective risk management.
  • To analyze the causes, consequences, and interlinkages of these obstacles.
  • To derive a policy roadmap for improved risk management strategies.

Main Methods:

  • Analysis of obstacles to individual risk management.
  • Examination of obstacles requiring collective action.
  • Assessment of obstacles affecting public authorities' risk management capabilities.

Main Results:

  • Identified distinct categories of obstacles: individual, collective, and governmental.
  • Detailed the causes, consequences, and interconnections of these barriers.
  • Highlighted the need for strategies addressing practical implementation challenges.

Conclusions:

  • Risk management is essential for economic and social development.
  • Overcoming implementation obstacles is key to leveraging risk management for poverty reduction.
  • A tailored policy roadmap is proposed to enhance risk management effectiveness.