Revolutionizing Disaster Risk Finance: Are You Up for The Challenge?
The Global Facility for Disaster Reduction and Recovery (GFDRR), the World Bank, the UK Department for International Development (DFID), and the Centre for Global Disaster Protection, have launched a new Challenge Fund window to pilot the development of innovative risk financing mechanisms, and align global innovation with on-the-ground user needs.
Developing countries are often the hardest hit by natural disasters such as floods, cyclones, droughts or earthquakes. Yet, they are the most sensitive to the budget volatility caused by major catastrophes, and are the least equipped to prepare for these extreme events.
Financing is at the core of any disaster management action, whether risk reduction, preparedness, financial protection, or resilient recovery. Unfortunately, financing after a disaster is often long delayed, increasing the human impact.
“The application of new technologies could revolutionize financial mechanisms, for example by better targeting funds to vulnerable communities” said Francis Ghesquiere, Head of the GFDRR Secretariat. “These innovations include forecast based mechanisms that can fund early-action before a disaster strikes, or big data and machine-learning algorithms that can improve the speed at which we assess the impact of an event and accelerate payouts. The real challenge is bringing together the technical experts working on these approaches, with the experts implementing crises response programs, and at-risk communities in affected countries.”
This Challenge Fund will support projects that help bring these communities together and strengthen financial resilience in developing countries. This round is a partnership between the Department for International Development, the Centre for Global Disaster Protection, the Global Facility for Disaster Reduction and Recovery, and the World Bank’s Disaster Risk Financing and Insurance Program. It is launched in association with the program alliance of the InsuResilience Global Partnership. It builds on the success of previous rounds focused on risk identification.
As such, the Challenge Fund seeks to pilot new approaches to support disaster and climate risk management in developing countries by encouraging “positive disruptive” innovation and non-traditional partnerships between technology institutions, academia, private sector, international organizations, NGOs and user groups.
Interested applicants will respond to challenges including: implementation of early-action mechanisms into disaster risk financing (DRF) instruments, use of big data and machine learning to revolutionize DRF mechanisms, and application to largely untapped risks such as food insecurity. This Challenge Fund window will provide up to 5 successful projects with funding ranging from US$ 100,000-200,000 to design and implement ground-breaking solutions to address such challenges.
Details about the Challenge Fund and the submission portal can be found here.
About the Global Facility for Disaster Reduction and Recovery
The Global Facility for Disaster Reduction and Recovery (GFDRR) helps high-risk, low-income developing countries better understand and reduce their vulnerabilities to natural hazards, and adapt to climate change. Working with over 400 partners—mostly local government agencies, civil society, and technical organizations—GFDRR provides grant financing, on-the-ground technical assistance to mainstream disaster mitigation policies into country-level strategies, and a range of training and knowledge sharing activities. GFDRR is managed by the World Bank and funded by 25 donor partners.