El Salvador - GFDRR
El Salvador - GFDRR
El Salvador - GFDRR
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V. RISK MANAGEMENT | 125<br />
a)<br />
b)<br />
c)<br />
Assessment of the government’s contingent liabilities through risk models that reflect exposure to<br />
natural disasters, and the losses associated with different events.<br />
Promoting the transfer of risk to competitive insurance markets. The government can reduce<br />
its contingent liabilities by promoting the insurance of private assets. In the event of a natural<br />
disaster, the government can focus its efforts on assisting the less-favored classes.<br />
Financing of sovereign risk. The government can manage its contingent liabilities by promoting<br />
the insurance of its public assets and seeking mechanisms to protect its budget from liquidity<br />
crises.<br />
The World Bank, like other financial agencies, is willing to continue supporting the Government<br />
of <strong>El</strong> <strong>Salvador</strong> in its efforts to develop an effective legal and institutional framework that incorporates<br />
integrated risk management as a central theme in the national planning process within critical sectors and<br />
different levels of government administration.<br />
D. SUMMARY OF RISK MANAGEMENT NEEDS<br />
The following table summarizes the estimated needs for conducting a risk management and mitigation<br />
program focused on strengthening the identification of threats, emergency mitigation and preparedness<br />
in the affected areas, as well as improving the capacity to manage disaster risks throughout the country.<br />
The estimated costs presented in this table are based on estimates by the Post-Disaster Needs Assessment<br />
team and thus should only be considered indicative.