Applications of Risk Financing Techniques to Manage Economic Exposurs to Natural Hazards

This study follows an analytical risk management process that begins by identifying the major hazards to which the countries of Latin America and the Caribbean are exposed. It then outlines the risk exposures related to these hazards, evaluates opportunities for risk transfer and presents examples of financing options in various countries. The document forms part of a series of studies undertaken by the Inter-American Development Bank's Sustainable Development Department in the area of financial planning for natural hazards. As part of the overall Bank strategy for proactive disaster risk management, this document focuses on the use of alternative financial instruments to cover different layers of risk.