Disasters present a broad range of human, social, financial, economic and environmental
impacts, with potentially long-lasting, multi-generational effects. The financial
management of these impacts is a key challenge for individuals and governments in
developed and developing countries. G20 Finance Ministers and Central Bank Governors
and APEC Finance Ministers have recognised the importance and priority of disaster
risk management strategies and, in particular, disaster risk assessment and risk financing.
The OECD has supported the development of strategies for the financial management
of natural and man-made disaster risks, under the guidance of the OECD High-Level
Advisory Board on Financial Management of Large-scale Catastrophes and the OECD Insurance
and Private Pensions Committee. This work has included the elaboration of an OECD
Recommendation on Good Practices for Mitigating and Financing Catastrophic Risks and
a draft Recommendation on Disaster Risk Financing Strategies The Financial Management
of Flood Risk extends this work by applying the lessons from the OECD’s analysis of
disaster risk financing practices and the development of its guidance to the specific
case of floods.