The Impacts of Disaster Risk on Sovereign Asset and Liability Management

Publication:
The Impacts of Disaster Risk on Sovereign Asset and Liability Management

dc.contributor.author	World Bank
dc.date.accessioned	2021-09-14T18:18:17Z
dc.date.available	2021-09-14T18:18:17Z
dc.date.issued	2021-08-31
dc.description.abstract	Implicit contingent liabilities, such as those generated by natural disasters, are often not quantified in the government balance sheet. However, when they materialize, they place pressure on government finances that may raise interest expenditures and financial risks. Understanding the impacts of disaster risk on sovereign assets and liabilities plays a key part in understanding the potential impact of sovereign disaster risk finance strategies which allow governments to reduce the costs and risks of disasters using prearranged financing and insurance methods. Applying the Sovereign Asset and Liability Management (SALM) framework is a new and comprehensive way of looking at the potential impact of a disaster on the public sector balance sheet through assets and liabilities. This paper introduces a framework that identifies three channels through which natural disaster will impact SALM. This framework is applied in three case studies, Peru, Serbia and New Zealand to derive lessons about the potential impact of natural disasters on the sovereign balance sheet and highlight the importance of accounting for disaster impacts across public sector balance sheets. The application of SALM can increase countries’ resilience to financial shocks posed by disaster risk through improved understanding of the impacts of disaster risk on both sides of the sovereign balance sheet. Going forward it could even be used to define a country’s risk tolerance to disaster risk, monitor changes in this position and help to inform policy design on disaster risk and where needed support the introduction of financial instruments to manage disaster risk.	en
dc.identifier	http://documents.worldbank.org/curated/undefined/303611630572516822/The-Impacts-of-Disaster-Risk-on-Sovereign-Asset-and-Liability-Management
dc.identifier.doi	10.1596/36256
dc.identifier.uri	https://hdl.handle.net/10986/36256
dc.language	English
dc.publisher	World Bank, Washington, DC
dc.relation.ispartofseries	Equitable Growth, Finance and Institutions Insight;
dc.rights	CC BY 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by/3.0/igo
dc.subject	SOVEREIGN DEBT
dc.subject	NATURAL DISASTER
dc.subject	DISASTER RISK MANAGEMENT
dc.subject	PUBLIC FINANCE
dc.title	The Impacts of Disaster Risk on Sovereign Asset and Liability Management	en
dc.type	Report	en
dc.type	Rapport	fr
dc.type	Informe	es
dspace.entity.type	Publication
okr.crossref.title	The Impacts of Disaster Risk on Sovereign Asset and Liability Management
okr.date.disclosure	2021-09-02
okr.date.doiregistration	2025-05-07T10:48:18.331837Z
okr.date.lastmodified	2021-09-01T00:00:00Z	en
okr.doctype	Economic & Sector Work
okr.doctype	Economic & Sector Work::Other Financial Sector Study
okr.docurl	http://documents.worldbank.org/curated/undefined/303611630572516822/The-Impacts-of-Disaster-Risk-on-Sovereign-Asset-and-Liability-Management
okr.guid	303611630572516822
okr.identifier.externaldocumentum	090224b08893790e_1_0
okr.identifier.internaldocumentum	33382680
okr.identifier.report	163586
okr.imported	true	en
okr.language.supported	en
okr.pdfurl	http://documents.worldbank.org/curated/en/303611630572516822/pdf/The-Impacts-of-Disaster-Risk-on-Sovereign-Asset-and-Liability-Management.pdf	en
okr.region.country	New Zealand
okr.region.country	Peru
okr.region.country	Serbia
okr.topic	Conflict and Development::Disaster Management
okr.topic	Environment::Natural Disasters
okr.topic	Finance and Financial Sector Development::Finance and Development
okr.topic	Finance and Financial Sector Development::Public & Municipal Finance
okr.topic	Finance and Financial Sector Development::Strategic Debt Management
okr.topic	Public Sector Development::Public Financial Management
okr.unit	EFI-FCI-Risk Finance (EFNRF)