R ISK MANAGEMENT : A POWERFUL INSTRUMENT FOR SUSTAINABLE DEVELOPMENT S ADEGH B AKHTIARI (2014) Roxane Doll - Noëlia Collado 1

1. Terms definitions 2. Poverty and risk : “a vicious downward spiral” 3. MDGs SDGs 4. Risk management 5. Components of risk management 6. Supportive social environment 7. Concluding remarks Problem : Is risk management a powerful tool for sustainable development ? 2

Sustainable development : “Meets the needs of the present generation without compromising the ability of future generations to meet their own needs. » Brundtland Commission report – 1987  SD does not focus only on the environment but on three primary aspects : - Economic development - Social development - Environmental protection Risk : The possibility that something harmful or undesirable may happen. This could include harm, injury, or abuse to your organization’s clients, volunteers, board members, employees, property, or reputation 3

1980s : The Brundtland Commission drew attention to links between increasing poverty and environmental degradation  Poor people are forced to overuse environmental resources to survive  The impoverishment of their environment further impoverishes them,  Their survival is even more difficult and uncertain The case of developing countries : 85% of the world’s population that is exposed to natural hazards (earthquakes, cyclones, floods, drought…) lives in developing countries Disasters trap people into poverty So any policy that reduce poverty may be considered as a kind of tool for sustainable development. Inability to manage risks Many risks Difficulty to reach development goals (economic growth and poverty reduction) Difficulty to reach development goals (economic growth and poverty reduction) 4

Sept 2000 : The Millennium Summit  189 member states of the United Nations  The Millennium Declaration commitments : - Poverty eradication - Environmental protection 8 goals + 18 quantified and time-bound targets + 48 indicators The 8 MDGs : 1. Eradicate extreme poverty and hunger 2. Achieve universal primary education 3. Promote gender equality and empower women 4. Reduce child mortality 5. improve maternal health 6. Combat HIV/AIDS, malaria, and other diseases 7. Ensure environmental sustainability 8. Develop a Global Partnership for Development Some weaknesses : Cover only some dimensions of poverty Neglect distributive issues Some MDGs can’t be measured (no data) Short or medium term vision ≠ sustainability is a longer-term issue 5

Earth Summits : 1992 and 2012 in Rio de Janeiro  Generated a parallel concept to the MDGs : the SDGs Two main themes : - Achieving sustainable development and lift people out of poverty - improving international coordination for sustainable development The 20 SDGs : 1. Poverty reduction 2. Water and sanitation 3. Energy 4. Social protection 5. Disaster risk reduction 6. Climate change 7. Biodiversity 8. Education 9. Gender equality and the empowerment of women 10. Food security, nutrition and sustainable agriculture …. 6 Rio+20 provides an opportunity to think globally, so that we can all act locally to secure our common future.

Any factor that may affect negatively the success of the project delivery of its outputs securing of outcomes Negative impact on resourcing, time, cost and quality The possibility of loss Bring security and a means of progress for people in developing countries 7

8 Risk Management Risk cannot be eliminated altogether  be reduced Combine the capacity to prepare + the ability to cope once a risk has happened

An individual’s own responsibility  limits  sharing the responsibility with others Mutual assistance between family/groups is important in poor countries Without a supportive social environment, individual risk management will not be successful  3 ways to support peoples risk management 1. The social society and the private sector 2. The state 3. The International community 9

Sustainable development included three notions:  economic, social and environment Poverty is an important issue to achieve sustainable development MDGs and SDGs goals are to reduce poverty  useful instruments to reach sustainable development A lack of prevention and preparation concerning risk  tragic consequences  an inability to manage those risks can threaten sustainable development goals A powerful tool for development and can bring security and future prosperity to people in the developing world Sharing the responsibility and have a support from the private and public sector and the international community is more effective. 10

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