OECD Jacobzone Davos 2014

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5th International Disaster and Risk Conference IDRC 2014 Integrative Risk Management - The role of science, technology & practice 24-28 August 2014 in Davos, Switzerland

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OECD Jacobzone Davos 2014

  1. 1. The OECD Recommendation on the Governance of Critical Risks Resilience is key IDRC DAVOS 2014 OECD High-Level Risk Forum
  2. 2. A new context: Governments are facing novel risks in a complex landscape • Increased major shock events – Large-scale, novelty, complexity, trans-boundary and cascading effects • Increased vulnerabilities of modern societies – Mobility, interdependency, interconnectedness, climate change, concentration, urban & coastal development • Reduced capacities of national governments, new stakeholders, increased citizen’s expectations – Privatisation, decentralisation, social networks, media scrutiny
  3. 3. Risk drivers: Interconnected economies are confronted with cascading impacts 80% 70% 60% 50% 40% 30% 20% 10% 0% Luxembourg Korea Global value chain participation index in OECD countries, 2009 Czech Republic Slovak Republic Ireland Belgium OECD Netherlands Hungary Finland Austria Sweden Estonia Norway Slovenia Switzerland Chile Portugal Denmark Israel Germany Poland Japan France Australia Greece United Kingdom Mexico Spain Italy United States Turkey Canada New Zealand Global value chain participation index (GVC) Source: Mirdoudot, S. and K. De Backer (2012), “Mapping Global Value Chains”, OECD, www.oecd.org/dac/aft/MappingGlobalValueChains_web_usb.pdf • GVCs creates the potential for shocks to propagate • Critical infrastructure are key factors of resilience
  4. 4. Objective: Ensure that governments develop robust frameworks for the governance of critical risks and their resilience to major shocks Adopted by the OECD Ministers in May 2014 Close cooperation with the UN and the revision of the HFA 4 The OECD Recommendation on the governance of critical risks 1. A holistic approach to risk management 2. Risk assessment, foresight, financing framework 3. Whole-of-society approach to prevention 4. Strategic crisis management 5. Transparency, accountability, improvement Source: OECD (2014), Recommendation of the Council on the Governance of Critical Risks
  5. 5. « Establish and promote a comprehensive, all-hazards and trans-boundary approach to country risk governance to serve as the foundation for enhancing national resilience and responsiveness» 5 Principe 1: A holistic approach to risk management • National strategy for governance of critical risks • Leadership, roles and responsibility • Whole-of-government – aligning priorities • Whole-of-society - PPP
  6. 6. « Build preparedness through foresight analysis, risk assessments and financing frameworks, to better anticipate complex and wide-ranging impact» Crisis development • Capacities for risk assessment and foresight • Linkages with capabilities planning • Ex-ante financing mechanisms for contingent liabilities • Cf G20/OECD Framework for Disaster Risk Assessment and Financing 6 Principe 2: risk assessment, foresight, financing frameworks Decade Year Month Day Hour
  7. 7. « to raise awareness of critical risks to mobilise households, businesses and international stakeholders and foster investment in risk prevention and mitigation » • Risk communication and culture (2 ways) • Business continuity (focus on critical infrastructures) • Mix of structural and non-structural measures 7 Principe 3: Whole-of-society approach for prevention
  8. 8. Source: OECD (2014), Boosting resilience through innovative risk governance, http://www.oecd.org/governance/risk/boosting-resilience-through-innovative-risk- management.htm 8 Unleash the potential for whole-of-society resilience efforts • Why investments in prevention are so limited despite their benefits? • Shortcomings in risk governance: o Lack of private sector engagement in business continuity efforts o Reluctance of citizens to self-protect o Limited rewards and low visibility for politicians to invest in prevention o Gaps in enforcement of regulation o Dis-incentivising effects of post-disaster funding by governments Institutions matter to resolve gaps in resilience
  9. 9. Principe 4: Strategic Crisis Management « Develop adaptive capacity in crisis management by coordinating resources across government, its agencies and broader networks to support timely decision-making, communication and emergency responses » • Strategic crisis management capacities • Leadership, early-warning, sense-making • Inter-agency and international coordination • Subsidiarity & scaling-up capacities OECD network of Strategic Crisis Managers 9
  10. 10. Principe 5: Good governance in risk decision-making « To demonstrate transparency and accountability in risk-related decision making by incorporating good governance practices and continuously learning from experience and science » • Transparency and accountability in risk management decisions, based on knowledge and communication • Trade-offs decision informed by the full risk portfolio • Feedback mechanisms and continuous improvements Fostering trust in government and in public institutions 10
  11. 11. From Commitments to Action: sharing of best practices through peer reviews • Peer-reviews, a key OECD practice for: – cross-learning and experience sharing across countries in terms of risk management and governance – enabling policy reform with useful policy recommendations and inclusive dialogue • Partnership in HFA Reviews with UNISDR/EC in Europe • Credibility, objectivity, impact and relevance 11
  12. 12. • Bring political momentum to risk management on the way to Sendai WCDRR • Complementarity with the Hyogo Framework for Action – Focus on complex risks and governance – Focus on whole of society and whole of government approach • Development of a policy toolkit to facilitate implementation • Used to support and evaluate countries risk management policies and practices 12 Next steps
  13. 13. Contact: Stéphane Jacobzone OECD High Level Risk Forum Stephane.jacobzone@oecd.org 13 THANK YOU

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