El Salvador - GFDRR

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