Risk management, insurance and finance
- families reached through R4 in Ethiopia, Kenya, Malawi, Senegal Zambia and Zimbabwe
- households is our target for R4 by 2022
- of emergency response costs can be reduced with early action using a climate-triggered forecast mechanism
The vast majority of the world’s 800 million hungry people depend on agriculture for their livelihoods. Environmental degradation, resource scarcity, climate change and price volatility, together with other risks, pose serious threats to food and nutrition security.
In the face of these challenges, the World Food Programme (WFP) is working to link its governments and partners’ social protection and disaster risk reduction programmes with a more comprehensive set of innovative tools including disaster risk management, risk transfer, and financial inclusion.
Disaster risk management includes the creation of assets to improve the natural resource base families depend on, thereby decreasing the impact of climate shocks and boosting production, income and livelihoods to strengthen their resilience.
Transferring risks through tools like insurance and government-managed contingency finance instruments reduces uncertainty. It allows the poorest and most vulnerable farmers to make investments that increase their productivity. In case of adverse events such as droughts or floods, farmers receive immediate insurance pay-outs, so that they do not have to take desperate measures such as selling off livestock, tools or other productive assets to survive.
Micro-insurance can improve access to financial services, enabling households to invest in productive assets, as well as in seeds, fertilizers and new technologies to increase their agricultural productivity and livelihoods. This ultimately makes them more food secure and resilient.
The Food Security Climate Resilience Facility (FoodSECuRE)
FoodSECuRE is a corporate facility using forecast information to trigger early action before climatic shocks occur and to provide predictable multi-year funding for building climate resilience.
R4 Rural Resilience Initiative
WFP and Oxfam America’s R4 Rural Resilience Initiative is a comprehensive risk management approach that helps vulnerable rural households increase their food and income security in the face of increasing climate risks.
Purchase for Progress
In collaboration with a wide range of partners, P4P works to improve smallholder farmers’ agricultural production and promotes their participation in formal markets.
The Weather Risk Management Facility
A joint initiative by WFP and IFAD, WRMF aims to reduce smallholders’ vulnerability to weather and other risks that limit agricultural production and food security.