OECD publication, to be launched on 5 May 2014, identifies measures to minimise economic and social damage and help economies recover rapidly after a disaster. It proposes a fundamental shift in risk governance, whereby risk management actors are encouraged, through appropriate incentives, to help boost resilience, rather than rely on government for post-disaster assistance. Further information available at www.oecd.org/gov/risk/boosting-resilience-through-innovative-risk-management.htm

1. This report identifies measures to minimise economic and social damage and
help economies recover rapidly after a disaster. It proposes a fundamental
shift in risk governance, whereby risk management actors are encouraged,
through appropriate incentives, to help boost resilience, rather than rely on
government for post-disaster assistance.
GROWING UNCERTANTIES
AND VULNERABILTIES
Large scale natural and human-induced
disasters generate considerable economic
losses. Total damages in OECD and BRIC
countries over the last decade have been
estimated at nearly USD 1.5 trillion. The
Canterbury earthquake in New Zealand in
2011 caused damages equivalent to 20%
of annual GDP, and the 2010 earthquake
Chile resulted in losses worth 10% of GDP.
The Great East Japan Earthquake of 2011
exemplifies both the uncertainty and
growing vulnerability of OECD economies
to such events, which can have far-ranging and long-term global impact.
Vulnerabilities stem from a number of socio-economic trends:
• An increased concentration of
population - especially the elderly,
more vulnerable groups - and
economic assets in risk prone areas.
• Accelerated urbanisation.
• Increased global economic integration,
facilitated by transport mobility and
communication.
• Deteriorating environmental conditions
coupled with climatic changes.
BOOSTING RESILIENCE THROUGH
INNOVATIVE RISK GOVERNANCE
0
50
100
150
200
250
300
350
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
AnnualeconomiclossesinUSDbillion
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2009 2050
www.oecd.org/gov/risk/boosting-resilience-through-innovative-risk-management.htm
@OECDgov
OECD Public Governance & Territorial Development
Economic losses due to disasters in OECD and BRIC countries
1980-2012 (USD Billion) Source: EM-DAT
% of population aged 65 and over Source: OECD (2009)

2. RISK OWNERSHIP Emphasise the role of risk ownership
by increasing risk communication, raising awareness, engaging in
dialogue on risk among all stakeholders, owners and managers of
risks.
REWARDS Build a culture of rewards that encourages proactive
behaviour to increase resilience.
TRUST Emphasise the role of trust prior to disasters to avoid costly
measures to restore trust in the aftermath of an event. Transparency
and accountability in managing resilience are key factors in maintaining
trust in the long run.
COOPERATION Encourage joint action through international
collaboration, public-private partnerships and across governmental
sectors and levels to address the trans-boundary and complex nature
of future risks.
SHARING Increase the collection and sharing of risk information by taking advantage of “Big Data”.
Triangulate information from governments and the private sector as well as information from web-based
sources.
MONITORING Ensure that resilience measures adapt to changing risk patterns by monitoring and
evaluating risk trends and efforts based on multi-hazard analyses.
BOOSTING RESILIENCE THROUGH
INNOVATIVE RISK GOVERNANCE
MOVING RISK GOVERNANCE TO
INCLUSIVE POLICY MAKING
Against this backdrop, policy makers need to focus
attention on strengthening resilience. To this end, the
report proposes a fundamental shift in risk governance.
Such a shift can only be effected by making policy
processes more inclusive, raising awareness of risks
and encouraging stakeholders at all levels to contribute
to a shared vision of a resilient society.
Governments should provide incentives for individuals
and companies to invest in self-protection. They
should tap into the potential of the private sector to
supply risk reduction solutions, while working with
them to agree on business continuity standards. Collective action should be fostered nationally,
but also across countries so that resilience projects serve a common functional need.
FROM DIAGNOSTICS TO ACTION
POLICY RECOMMENDATIONS
www.oecd.org/gov/risk/boosting-resilience-through-innovative-risk-management.htm
@OECDgov
OECD Public Governance & Territorial Development
Emergency
measures
Short-term
measures
Medium-
term
measures
Long-term
measures:
prevention
and
mitigation
Disruptive
Shock
RESILIENCE
Capacity and
speed of
regaining
function after a
disruptive
shock