Integrated Climate Risk Management for Urban Resilience | Climate Change Adaptation
▶️ The Integrated Climate Risk Management (ICRM) approach is a holistic understanding to strengthen cities resilience towards the impacts of climate change. For more information about ICRM for Urban Development, please visit: https://indexinsuranceforum.org/climate-insurance
▶️ ICRM and Climate Change Adaptation | Meet Emma, the major of the city of Titinati. Her city is very crowded and is quickly growing and developing. As major, Emma deals with floods as one of the impacts of climate change. Flooding affects the day to day activities of the city, damages property and even claims lives in extreme cases. This does not only slow down growth and development, but can wipe away years of progress made.
The ICRM approach has five phases, which are as follows: Prevention, Retention & Transfer, Preparedness, Response, and Recovery. These five steps are interlinked and work best when their activities are coordinated together with cities authorities and inhabitants who are dealing with climate change adaptation.
1 Risk prevention | Identifying hazards in particular areas and how infrastructure and activities are exposed to that hazard. This can help determine the climate change adaptation measures that could be done to prevent damage if there is a flood.
2 Retention and transfer | Even if all mitigation and adaptation measures to climate change are taken, a city may still face the risk of flooding; this unavoidable risk is called residual risk. This type of risk can be either retained or transferred. An example could be to transfer this risk to the insurance sector.
3 Preparedness | As a major, Emma must prepare for floods. Emma can take pre-disaster financing; that is, financing before a hazard strikes to ensure that funding will be available immediately after an extreme weather event. Furthermore, she can align her city´s climate risk management strategy, putting in place measures to protect the city´s critical infrastructure and work with relevant stakeholders to develop a contingency plan to respond to a disaster.
4 Response | In the event of a climate disaster, emergency measures must take place. The lack of access to finance can slow down these measures or not happen at all, which can increase loss of lives and economic losses. Payouts of insurance products can address these needs.
5 Recovery | The route to recovery can be long and difficult, but with innovative financial assistance, building back better can be quicker and easier.
Cities as engines of growth, urban development and culture must adopt an Integrated Climate Risk Management (ICRM) approach if resilience to climate change is to be strengthen and has to be adapt. Risk transfer solutions in combination with other risk management, especially risk reduction approaches, have the possibility to significantly reduce risk and make cities safe, productive and resilient.
– Find out more about risk transfer solutions at the climate insurance database: https://indexinsuranceforum.org/climate-insurance
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