Your SlideShare is downloading. ×
‘A converging vision of resilience  building between the private     sector and civil society’ Marcus Oxley - Global Netwo...
Building Resilient Nations andCommunitiesMarcus OxleyGlobal Network of CSOs for Disaster Reduction4th International Disast...
CONTEXT: Multiple Risks are increasing globally   and can threaten national security US$                                  ...
CONTEXT: Multiple Risks are increasing globally   and can threaten national security US$                                  ...
Some Drivers of Risk:Social:• Increased exposure, vulnerability to extreme hazards• Population growth / demographic change...
Some impacts of disasters:Private Sector                   Community Loss of Assets - buildings /   • Loss of life / inju...
The case for a Resilience-based Approach“the goal of all theory is to make as simple as possible whilstadequately represen...
Building general (systemic) resilience:                       EconomicCommon ResiliencePrinciples                         ...
Core Values & Principles drawn from disasters experiences          can inform actions to build resilience
Extreme events (disasters) provide critical insightsto the “principles” of resilience:Principle                      Actio...
Flood Resilience - Social Sector; Pari People, SouthSudan
Flood / Earthquake Resilience - Economic Sector; AutomotiveCompaniesNissan was able to localise the impact / quick recover...
Key Messages Social, economic, environmental risks are  interconnected Building resilience is best way to protect agains...
Key Challenges> Trade offs: Short term Costs verses longer term    Benefits> Threshold of acceptable risk> Core business o...
Business ResilienceOvercoming vulnerability for competitiveadvantage!Elements of a private sector approachOtto KocsisPrinc...
Loss lessons of disruptions                                                   Disruption causes: 85% NatCat               ...
Cumulated Business Interruption-Losses               increased 2-times more than Property-Losses                          ...
A Change in risk landscapelearned the hard way:Interconnectivity/no buffers: e.g. customers with >1000 suppliers ~25% aff...
Business has become global           Yesterday:                          Today:  Integrated production site       Global, ...
Lightning @ Philips Albuquerque  March 17 2000Who                                    WhoNokia                             ...
From Property Protectionto Resilience in the Value ChainProperty Protection      Business Continuity       Business Resili...
How to identify corporate exposuresHow much resilience do we have / need?                                  1. Value chain ...
Top down approach:Reduction of total cost of risk at improved protection                                                 C...
Strategies to foster Resilience1. Know your value chain/creation & vulnerabilities;   learn from incidents, identify event...
Resilience is … not an end of pipe – risk management solution but an intrinsic characteristic of doing businessResilienc...
Private sector-civil society partnership opportunities for resilience building              Dr. Andrew Mitchell
Challenges that require partnership• over 50% of people exposed to disaster risk• $US380 billion damages from natural disa...
What does resilience building mean operationally?                                          WEF, 2008
What does resilience building mean operationally?                                      Practical Action, 2011
The Sustainable Livelihoods Approach                                       DFID, 2001
Identifying the operational common ground      Private sector            Common Features                  Civil SocietyPri...
Identifying future common ground•Aiming for the stability of a system subject to multi-hazards,change and uncertainty: sus...
Private sector vision of action                                  WEF, 2008            Private sector industry             ...
Civil society vision of action       Key resilience building action                  Private sector partner               ...
Horn of Africa Risk Transfer for AdaptationIntegrated risk management, using participative risk analysis withthe community...
Horn of Africa Risk Transfer for Adaptation                                      Oxfam, 2010
R4 Rural Resilience InitiativeExtension of Harita, Partnership with WFP funded by USAID, scaled up toSenegal and another t...
HARITA partnership roles                      Civil Society/                                          Public sector/ acade...
Conclusions• Partnership is inevitable for PS and CS to negotiate the futurecomplex, uncertain and interconnected world. S...
THANK YOU!
Plenary Discussion• Q & A / Points for Clarification• Constraints and Opportunities• Top three recommendations to take for...
Upcoming SlideShare
Loading in...5
×

A converging vision of resilience building between the private sector and civil society

566

Published on

Andrew MITCHELL

ACF, France
Marcus OXLEY

Global Network for Disaster Reduction UK, United Kingdom
Otto KOCSIS

Global Head of Technical Center Business Resilience, Zurich Insurance Company Ltd, Switzerland

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
566
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Transcript of "A converging vision of resilience building between the private sector and civil society "

  1. 1. ‘A converging vision of resilience building between the private sector and civil society’ Marcus Oxley - Global Network for Disaster Reduction Otto Kocsis - Zurich Insurance Group Ltd Andrew Mitchell - Disaster Risk Management consultant
  2. 2. Building Resilient Nations andCommunitiesMarcus OxleyGlobal Network of CSOs for Disaster Reduction4th International Disaster and Risk ConferenceAugust 2012
  3. 3. CONTEXT: Multiple Risks are increasing globally and can threaten national security US$ Time Disaster losses increasing in all countries Increasing complexity, uncertainty, fragility Most common disasters are frequent, extensive, small-scale, climate-related Majority losses; uninsured, under-reported, no compensation
  4. 4. CONTEXT: Multiple Risks are increasing globally and can threaten national security US$ Time Disaster losses increasing in all countries Increasing complexity, uncertainty, fragility Most common disasters are frequent, extensive, small-scale, climate-related Majority losses; uninsured, under-reported, no compensation
  5. 5. Some Drivers of Risk:Social:• Increased exposure, vulnerability to extreme hazards• Population growth / demographic changes• Unplanned migration & urbanisationEconomic:• Poverty / Severe economic disparity / fiscal imbalances• Increasing globalisation• Unsustainable patterns of production & consumption• Commodity Price volatilityEnvironmental:• Ecosystem decline• Climate changePolitical:• Weak / failing governance• Conflict / insecurity / violence
  6. 6. Some impacts of disasters:Private Sector Community Loss of Assets - buildings / • Loss of life / injuries equipment / stock Loss of supplies / raw • Loss of livelihoods materials / customers Loss of value creation • Loss of housing capabilities/market position Impact on customer • Loss of household assets Impact on workforce • Loss of infrastructure
  7. 7. The case for a Resilience-based Approach“the goal of all theory is to make as simple as possible whilstadequately representing reality”Appropriate solutions must be flexible, holistic and take a“systems-based” perspectiveResilience is at the heart of sustainable social andeconomic developmentCommunity resilience is foundation of national resilienceResilient economies are central to resilient communitiesBuilding social and economic resilience is the bestway to protect against multiple risks in the face ofcomplexity and uncertainty
  8. 8. Building general (systemic) resilience: EconomicCommon ResiliencePrinciples Social Environment Different sectors, different risks - Common principles
  9. 9. Core Values & Principles drawn from disasters experiences can inform actions to build resilience
  10. 10. Extreme events (disasters) provide critical insightsto the “principles” of resilience:Principle Action1. Preparedness Early warning; Contingencies2. Responsiveness Response procedures; feedback3. Inclusive Representation ; Participation4. Self-organising/ autonomy Subsidiary; Decentralisation5. Learning Sharing Knowledge / information6. Connectedness Collaboration; Partnership; Alliances7. Diversity Alternatives; Redundancies8. Modularity Self-sufficiency; Devolution;9. Social Cohesion Just, equitable rules, values ; Trust;10. Boundaries / Limits Natural ,Social ; Rights / Entitlements
  11. 11. Flood Resilience - Social Sector; Pari People, SouthSudan
  12. 12. Flood / Earthquake Resilience - Economic Sector; AutomotiveCompaniesNissan was able to localise the impact / quick recovery:Vice-President Toyota “we intend to study Nissan’s approach tosee what we can learn”
  13. 13. Key Messages Social, economic, environmental risks are interconnected Building resilience is best way to protect against risk Route to resilience is essentially the same for different risks Disasters: Adversity into Opportunity Value of collaboration: State, private sector, civil society Cross-scale collaboration (balanced approach - top- down / bottom-up) Think Global - Act Local Local people are primary stakeholders Starting point: understanding the local context
  14. 14. Key Challenges> Trade offs: Short term Costs verses longer term Benefits> Threshold of acceptable risk> Core business or corporate social responsibility ?> Targeting the most vulnerable> Changing the status quo> Small scale extensive disasters> How to systemise / share learning> Incentives to operationalize resilience principles
  15. 15. Business ResilienceOvercoming vulnerability for competitiveadvantage!Elements of a private sector approachOtto KocsisPrincipal customers - Business Interruption – Business ResilienceCorporate EngineerZurich Global Corporate
  16. 16. Loss lessons of disruptions Disruption causes: 85% NatCat 11. March 2011 14. April 2010© Zurich Insurance Company Ltd, Risk Engineering August 29, 2012 Supply Chain Resilience 2011; Zurich/BCI/DHL/Chart.Risk Grading - Training + Supply Business Interruption Inst of Purchasing 16
  17. 17. Cumulated Business Interruption-Losses increased 2-times more than Property-Losses 962 900 BI Loss Index (2005 = 100) 700 500 474 PD 300 100 01.2005 01.2006 01.2007 01.2008 01.2009 01.2010 01.2011 01.2012© ZFS Source: Large Loss Database, March 2012Source Zurich GCiE Portfolio 2005-2012 INTERNAL USE ONLY 17
  18. 18. A Change in risk landscapelearned the hard way:Interconnectivity/no buffers: e.g. customers with >1000 suppliers ~25% affected by Fukushima  >Mio 100 $ CBI loss. … can not be managed after the event with business continuity measuresMarket Production requirementscharacteristics Globalized,  Fragmentation of production to core competitive markets competence around globe  Lean supply chains / no buffers  Innovation within supply chain/clusters  Industry parks with blurring ownership Trendy products  Customized, big product portfolios with short sales  Fast product life cycles opportunities  Short time to market (2 weeks) volatile markets  Produce to order / market demand 18
  19. 19. Business has become global Yesterday: Today: Integrated production site Global, lean supply chains with raw and finished stock with limited buffering capabilities
  20. 20. Lightning @ Philips Albuquerque March 17 2000Who WhoNokia EricssonWhat What RFC from Philips RFC from Philips Small fire @ Philips caused supply Small fire @ Philips caused supply shortage shortageResult Nokia Result Ericsson was proactive with Philips was reactive actively identifies and buys RFC waits too long  no more spare spare capacity in market capacity in market did not suffer any production loss suffered severe production loss fostered a strong market position retired from the mobile phone business, until SONY arrived
  21. 21. From Property Protectionto Resilience in the Value ChainProperty Protection Business Continuity Business Resilience Business Resiliencetech. prevention for Mgmt. processes + Mgmt. in value chain Mgmt. in value chain organizational recovery + Top-Down Approach asset protection + Top-Down Approach 21
  22. 22. How to identify corporate exposuresHow much resilience do we have / need? 1. Value chain model $  Products/value creation  Involved sites  Inter-dependencies 2. Risks + consequences $  Production capacity loss (%)  Outage (days)  Alternatives (%, costs) $ 3. Profit-Impact to Group  Critical paths in value chain $  Efficiency of mitigation measuresINTERNAL USE ONLY
  23. 23. Top down approach:Reduction of total cost of risk at improved protection Customer High High protection protection High protection Suppliers Sourcing Production Distribution Clients Analyzing risks along the value chain allows top-down prioritization of the implied protection. 23
  24. 24. Strategies to foster Resilience1. Know your value chain/creation & vulnerabilities; learn from incidents, identify events early / be prepared with appropriate level of reaction (BCM), targeted redundancy (Pharma)2. Share assets (industry parks)/buffer stocks (Caterpillar), share info on risks in value chain/production volume proactively, keep IP/image3. Innovate within supply chain to resilience (electronics), foster strong relationship (clusters)4. Connectedness: manage business together with risks, include risk owners, foster diverse perspectives, enable communication/information flow5. Reduce complexity by postponement of customization (Benetton, Dell), standardization of parts (electronics: Lucent)6. Flexibility: Modularity (car platforms)/interchangeability (identical plants: GM); collaborate for alternatives: Keiretsu 24
  25. 25. Resilience is … not an end of pipe – risk management solution but an intrinsic characteristic of doing businessResilience as Capability to manage complexity in value chains, beyond own company boundaries Competitive advantage Management task Innovation goal … in a profit oriented, competitive environment! 25
  26. 26. Private sector-civil society partnership opportunities for resilience building Dr. Andrew Mitchell
  27. 27. Challenges that require partnership• over 50% of people exposed to disaster risk• $US380 billion damages from natural disasters aloneversus $US134 billion ODA 2011• Unmet humanitarian funding worst for a decade• Institutional development funding drops for the firsttime in 15 years• Funding on risk reduction = 4% of humanitarian and1% of development financeMore needs, larger resource gaps, time running out!
  28. 28. What does resilience building mean operationally? WEF, 2008
  29. 29. What does resilience building mean operationally? Practical Action, 2011
  30. 30. The Sustainable Livelihoods Approach DFID, 2001
  31. 31. Identifying the operational common ground Private sector Common Features Civil SocietyPrimary generator of GDP Local-level impact andand employs the majority Adaptability and mobility understandingof the population Collection and analysis of Ability to function inEconomic analysis, first-hand data to insecure/highly politicalmodelling and monitoring determine risk contextsDominant vehicle for Able to address difficultresearch, innovation and Ability to take risks and political issuesinvestmentOrganisation, management Influence on government Highly reactive in crises andand large-scale capacity policy and planning emergenciesPublic marketing and Training and local capacity Acceptance and trust fromawareness capacity building local communities
  32. 32. Identifying future common ground•Aiming for the stability of a system subject to multi-hazards,change and uncertainty: sustainable development vs stableeconomic environment•Looking beyond the timing of extreme events and disasters:proactive investment of effort and resources around disastercycles•Looking beyond local drivers to regional and global drivers ofrisk: e.g. transfer of information and analysis from the global tolocal scale•Centralisation and coordination of action across sectors arounda common plan. Who is the catalyst for resilience?•Better use and impact of resources in an environment ofincreased competition (funding/resources vs markets)•Standardisation of tools and cost benefit analysis
  33. 33. Private sector vision of action WEF, 2008 Private sector industry Role in resilience building Assessment and evaluation of risk, insuranceFinancial services, Insurance and reinsurance products for those at risk, key mobiliser across industriesEngineering and Construction Land-use planning, building design and codesCommunications (ICT & Telecom) Risk monitoring and alert systems, education Hazard-proofing, contingency plans,Utilities and transportation emergency management, logisticsHealth (pharmaceuticals) Early warning, preparedness for epidemics Irrigation, flood and watershed management,Agriculture and Extractive industries environment buffer zonesManufacturing Supply chain protection Supply chain protection, protection of localTravel and tourism economy and environment, communication capacity Awareness of risk and solutions throughMedia and entertainment public media
  34. 34. Civil society vision of action Key resilience building action Private sector partner Scientific agencies and insuranceRisk assessment and analysis companies Banking and telecommunicationsSocial protection transfers companiesFinancial services and micro-insurance for Banking and credit agencies, insurancethose at risk companies Land, sea and air transport companies,Hazard-proofed logistics and supply chains privatised utility companies Engineering consultants, water supply andHazard-proofed water, sanitation, and dissemination companies, buildingshelter construction companies Food manufacturing, natural resourceDiversification of employment and food extraction and infrastructure companies,production, protection of ecosystems tourismAwareness raising and education Telecommunications companies, mediaHuman resources, training, and Management, human resource andmanagement capacities training consultants
  35. 35. Horn of Africa Risk Transfer for AdaptationIntegrated risk management, using participative risk analysis withthe community, manages both large-scale and local hazards.Scaled up from 200 to 13,000 HH over three years.1. Risk Reduction: improved agricultural practices, rainwaterharvesting, soil and water conservation techniques. Building onthe national social protection system (work for assistance oncommunity risk reduction projects).2. Risk Transfer: Work for microinsurance, using weather-indexedproducts for short- and long-cycle crops. Work feeds intocommunity risk reduction projects, richer farmers pay directly forpremiums.3. Prudent risk taking: credit for livelihood diversification (honeyproduction), experimentation for new technology (high yieldseeds) and business opportunities (cash crops). Farmers willingto take risks, whilst insurance acts as a guarantee forbanks/lenders. Premium holders access concessional loans.
  36. 36. Horn of Africa Risk Transfer for Adaptation Oxfam, 2010
  37. 37. R4 Rural Resilience InitiativeExtension of Harita, Partnership with WFP funded by USAID, scaled up toSenegal and another two countries, reaching half a million people over 5years4. Risk reserves: Promotion of savings Oxfam, 2012
  38. 38. HARITA partnership roles Civil Society/ Public sector/ academia/ Private sector Community donors Community and LOCAL level Farmer’s Cooperative Mekele University Ethiopia’s National Nyala Insurance Meteorological Agency Company REGIONAL/ Relief Society of TigrayNATIONAL level (REST) Tigray Regional Food Security Dedebit Credit and Coordination Office Savings Institution (DECSI) Tigray Cooperative Promotions Office Institute for Sustainable Development International Research Institute Swiss Re for Climate and SocietyINTERNATIONAL Oxfam USA level Goulston & Storrs/ Weil, Index Insurance Innovation Gotshal, & Manges, LLP Initiative at University of California-Davis Rockefeller Foundation
  39. 39. Conclusions• Partnership is inevitable for PS and CS to negotiate the futurecomplex, uncertain and interconnected world. Scaling downinitiatives and impact to the local level is a key challenge.• Both groups have individually developed conceptual andoperational visions of resilience that share significant commonground.• Both groups bring individual and common strengths towardsoperational partnerships. Aligning efforts behinds a commonvision and clearly stated expectation is critical for both groups tooperationalise resilience building.• PS-CS partnerships are already happening: building onprevious PPPs can create new opportunities and impact at thelocal level
  40. 40. THANK YOU!
  41. 41. Plenary Discussion• Q & A / Points for Clarification• Constraints and Opportunities• Top three recommendations to take forward 1. .. 2. .. 3. ..

×