Risk management in my own community In my community, Community-based risk management refers to the strategies adopted by households to mitigate the impact of shocks and cope with risk. Risk can be classified as idiosyncratic, meaning one household’s experience is typically unrelated to neighboring households’, or covariate, meaning that many households in the same locality suffer similar shocks. Key Concepts • A local area might be exposed to a number of disaster risks. It will be necessary to understand the nature, and impact of these disasters in order to better prepare for future; • A range of social groups may exist in a district, municipality or commune. The vulnerability of different groups may differ from each other. It is important for local authorities to understand the reasons for vulnerability of different groups; • The communities, local authorities and civil society groups may have multiple resources and capacities to deal with disasters; e.g. indigenous knowledge, policies, disaster reduction programs, technical institutions, machinery and equipment, and social networks; • Local authorities must identify the challenges faced and lessons learnt from the past experiences of responding to disasters;

1. Hassan Adamu Danguguwa Risk and Opportunity: Managing Risk for Development
FINAL PROJECT ON
RISK MANAGEMENT IN MY OWN COMMUNITY
BY
HASSAN ADAMU DANGUGUWA
(Hassandanguguwa@gmail.com)

2. Hassan Adamu Danguguwa Risk and Opportunity: Managing Risk for Development
Introduction to Risk management
Risk management is the identification, assessment, and prioritization of risks (defined in ISO
31000 as the effect of uncertainty on objectives) followed by coordinated and economical
application of resources to minimize, monitor, and control the probability and/or impact of
unfortunate events or to maximize the realization of opportunities. Risk management’s objective
is to assure uncertainty does not deflect the endeavor from the business goals.
Risks can come from various sources: e.g., uncertainty in financial markets, threats from project
failures (at any phase in design, development, production, or sustainment life-cycles), legal
liabilities, credit risk, accidents, natural causes and disasters as well as deliberate attack from an
adversary, or events of uncertain or unpredictable root-cause.
Risk managementin my own community
In my community, Community-based risk management refers to the strategies adopted by
households to mitigate the impact of shocks and cope with risk. Risk can be classified as
idiosyncratic, meaning one household’s experience is typically unrelated to neighboring
households’, or covariate, meaning that many households in the same locality suffer similar
shocks.
Key Concepts
• A local area might be exposed to a number of disaster risks. It will be necessary to understand
the nature, and impact of these disasters in order to better prepare for future;
• A range of social groups may exist in a district, municipality or commune. The vulnerability of
different groups may differ from each other. It is important for local authorities to understand the
reasons for vulnerability of different groups;
• The communities, local authorities and civil society groups may have multiple resources and
capacities to deal with disasters; e.g. indigenous knowledge, policies, disaster reduction
programs, technical institutions, machinery and equipment, and social networks;
• Local authorities must identify the challenges faced and lessons learnt from the past
experiences of responding to disasters;

3. Hassan Adamu Danguguwa Risk and Opportunity: Managing Risk for Development
To understand a risks in the community:
1. Past Disasters in the Local Area
 What disasters were experienced in the area over the past 10 years?
 In which parts of the district or municipality the disasters were occurred?
 What is the recurrence period of the relevant hazards?
 What was the severity of various disasters?
 What was the duration of stay of the hazards?
 What other hazards might occur in the local area?
2. Impact of disasters
 Which social groups were severely affected by the various disasters?
 What kind of impact, disasters had upon people?
 Which social and economic development sectors were severely affected?
 What kind of impact, the disasters had upon the development sectors?
 What was the impact of disasters upon the environment?
3. Most vulnerable communities and groups
 Which social groups were severely affected by the disasters?
 What were the reasons, which made these groups more vulnerable?
 What are their sources of livelihoods?
 What is their socio-economic status?
 What is the percentage of these groups out of the total population size?
4. Local level resources and coping mechanisms
 What capacities and resources communities used to deal with the disasters and recover
from them?
 Which key stakeholders were involved in disaster response and recovery?
 What resources local authorities used to respond to the disasters and organize recovery?
 What resources the local NGOs and civil society organizations; e.g. women union, youth
union, elderly union deployed to respond to disasters?
5. Challenges and lessons learnt
 What problems and challenges did the vulnerable groups face, to deal with the disasters?
 What problems and challenges did the local authorities, NGOs, mass organizations and
other stake holders face, in responding to the disasters?
 What lessons did the above stakeholders learn, in dealing with disasters in an effective
manner in future?

4. Hassan Adamu Danguguwa Risk and Opportunity: Managing Risk for Development
Risk ManagementPlanin a community
A risk management plan is a document that a project manager prepares to foresee risks, estimate
impacts, and define responses to issues. It also contains a risk assessment matrix. The risk
management plan contains an analysis of likely risks with both high and low impact, as well as
mitigation strategies to help the project avoid being derailed should common problems arise.
Risk management plans should be periodically reviewed by the project team to avoid having the
analysis become stale and not reflective of actual potential project risks.
Most critically, risk management plans include a risk strategy. Broadly, there are four potential
strategies, with numerous variations. Projects may choose to:
 Avoid risk — Change plans to circumvent the problem;
 Control/Mitigate risk; — Reduces impact or likelihood (or both) through intermediate steps;
 Accept risk — Take the chance of negative impact (or auto-insurance),
eventually budget the cost (e.g. via a contingency budget line);
 Transfer risk — Outsource risk (or a portion of the risk - Share risk) to third party or parties
that can manage the outcome. This is done financially through insurance contracts or
hedging transactions, or operationally through outsourcing an activity.

5. Hassan Adamu Danguguwa Risk and Opportunity: Managing Risk for Development
Conclusion
• Greater participation, choice and control for clients in community care has exposed a
tension between individualised care, and the imperatives of managing organisational risks
• Corporate models of risk management based on rules and standardised procedures tend to
focus on compliance and blame avoidance. In the long term, they may weaken
practitioners’ capacity for judgment based on knowledge and expertise
• Individualised care needs integrated approaches to managing risk which are built on
relationships, trust and judgment as well as rules and compliance