final project coursera risk management

7/25/2019 Final Project Coursera Risk Management

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Effective

Successful

&

Inclusive

Risk-Management

Risk management (RM) as a concept has

been discussed widely within, but notexclusively, the international

organizations and actors. Its basic

definition, according to the World Bank is

that it is a process of confronting risks,

preparing for them and coping with their

effects. The natural disasters, economic

crises, uneven development, among

others, have been posing significant

threat to people all around the world, as

well as the international system in

general. RM is therefore absolutely

necessary and it has two main aims.

PRODUCING RESILIENCE

ability to mitigate losses from adverse

shocks and to foster the economy

ACHIEVING PROSPERITY

by improving benefits from pursuing

opportunity

While these terms might sound vague, in

reality, the complexity of RM engages

various stakeholders which cooperate in a

matter which allows them to tackle the

problems and to be successful in pursuing

a common goal of healthy, prosperous

and opportunity-rich society.

RISK

MANAGEMENT(final project by Denisa Mockova; sources: World Bank material, flickr, google)


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WHY IS RISK

MANAGEMENT SO

ESSENTIAL ?

shocks affect people whether in

developed or developing countries

the most vulnerable are the poorest

people, unfortunately

additionally, these also lack the

options for managing risk/shocks

if RM does not engage properly, the

circulation of shock - (lack of)

response/even deeper poverty -

vulnerability - shock at even bigger

scale, will be as a vicious circle,

where there is no way out

Sustainable Development goeshand in hand with Risk

Management at all levels


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WHAT DOES EFFECTIVE,SUCCESSFUL & INCLUSIVE RISK-

MANAGEMENT ACTUALLY ENTAIL?

Thinking LONG-TERM, in advance: aim for rather prevention then for after-shock

engagement. The policies which need to be introduced must be focused on making

conditions which would not be a breeding ground for catastrophes. Even when the

disaster strikes, with successful implementation of RM the country can lessen the

damage and cope with consequences easier

PREPARATION: by thinking in advance, we refer to especially the preparation phase,

when all the effective tools,knowledge,skills and other important things shall take place in

order to encompasses three important and irreplaceable concepts

acquiring knowledge- we look for quality of information and access to it

obtaining protection- protection as essential component of security

obtaining insurance- can be of a great value in stage of preparation

COPING: after shocks hit (and

they increasingly will), coping

serve as response mechanism.

Examples are emergency and

relief responses as well as after-

disaster management of the

ground


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Cooperation &Engagement of: Households + Communities + Enterprise Sector +

Financial Sector + State + International Community

> it is absolutely necessary that Risk-Management is being used on all of these levels, as

ch of them is very specific and requires different interactions in order to facilitate the

al aims

think about risk chain: the

nteraction of various factors is

affecting the final conditions;

we talk about shocks versus:

external environment

internal conditions

risk management

outcomes

setting and building right,

realistic strategies and

foundations: these include

everything from basic

policies, through quality of

information, setting the

right incentives, via

overcoming behavioral

obstacles and ending with

ensuring effective and

sufficient financing


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LESSONS LEARNED

ccessful inclusive & effective Risk Management requires involvement of all the actors and stakeholders. If we are about to

hieve a win-win situation, meaning managing the risks while at the same time enhancing the development, we must take

o consideration all those factors mentioned above. They should flow harmonically among themselves and make a beautifu

whole as a part of risk management strategy for all the generations.

final project coursera risk management

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