From Risk to Resilience: Private Sector's Contribution to Disaster Risk Reduction (DRR)

Disasters are events that have the potential to cause significant damage, loss of life, and disruption to communities and their infrastructures all across the globe. Apart from causing substantial losses to life and property, disasters also lead to economic losses as the businesses are impacted in the affected region.?The escalated network of our world today means that the consequences of disasters are no longer limited to a specific area, country, or region. Instead, they can impact organizations and individuals in distant parts of the globe (Demrovsky, 2015). Hence, in the event of a disaster, in addition to the government's response, various other entities ought to come forward to offer assistance. Thus, the effectiveness of the government can be enhanced by utilizing the existing capacities and core strengths of the private sector.

Private sector involvement in post-disaster recovery can enable quicker and more effective recovery efforts, especially when governments are already overwhelmed. Therefore, given suitable enabling conditions, the private sector has the potential to make a highly beneficial impact on disaster recovery and mitigation, both in the immediate aftermath and in the long run.

The international community has also acknowledged the significance of involving the private sector in reducing the risks associated with disasters and thereby enhancing resilience for a considerable time. Initially, the role of the private sector in disaster risk reduction (DRR) was often limited to providing financial support through corporate social responsibility initiatives or donations (such as water, food, tarpaulin sheets, blankets and hygiene kits) during disaster response and recovery efforts. Nonetheless, in recent years, there has been a growing recognition of the private sector's potential and its importance in mitigating and managing disaster risks. Since 2011, there has been an increased focus on enhancing private sector involvement in DRR on a global scale. To facilitate this engagement, the UN Office for Disaster Risk Reduction (UNISDR) established the DRR Private Sector Partnership (DRR-PSP) Working Group. The purpose of this working group is to actively engage the private sector in DRR efforts by mobilizing resources through various means such as core business arrangements, collaborative actions, sustainability initiatives, corporate social responsibility (CSR) programs, philanthropic endeavours, and knowledge transfer.

In the UN General Assembly Resolution 44/236 (UNISDR, 2009; United Nations, 1989), national governments were urged to encourage their local administrations to take suitable measures to mobilize support from both the public and private sectors. The Hyogo Framework for Action (HFA), which was adopted by 168 countries during the UN World Conference on Disaster Reduction in 2005, also emphasized the importance of involving multiple stakeholders in disaster management. The framework emphasized the need for full commitment and participation from various actors, including governments, regional and international organizations, civil society (including volunteers), the private sector, and the scientific community (UNISDR, 2005). Within the realm of humanitarian action, the private sector plays a significant role as a key participant in the emerging landscape of collaboration and partnership (King's College, 2012). Studies reveal that disasters can have a significant and direct impact on businesses, often leading to severe consequences.

The private sector is recognized as a key player in strengthening resilience to disasters and has the potential to ensure the uninterrupted operation of their businesses during and after disasters, by incorporating DRR principles into their fundamental business models and by exploring potential business prospects.

When disasters strike, the consequences can be devastating, leading to significant loss of life, reduced productivity, destruction of assets, and even increased poverty. As a result, a detrimental cycle emerges that hinders development efforts and progress. The private sector possesses noteworthy strengths in terms of its abundant resources, expertise, and advanced technology. Therefore, it is necessary for this sector to fully employ its capacity to safeguard private businesses and ensure social security. The expertise and capabilities within the private sector should be effectively mobilized to foster collaborative initiatives in DRR. The World Economic Forum (WEF) in 2008 highlighted the capacity of the private sector to play a significant role in enhancing disaster resilience for businesses and communities. The WEF identified four key areas where the private sector can make valuable contributions: (i) Monitoring hazards and communicating risk through forecasting and warnings; (ii) Socio-physical strengthening through dams/sea walls and supply chain resilience; (iii) Sharing financial risk through disaster insurance pools; and (iv) Disaster preparedness through flood management, GIS, staff training, etc. Another report by Asia-Pacific Economic Cooperation (APEC) in 2013 identified and discussed six different categories of positive approaches and practices observed within the private sector: (i) Resilience efforts at the economy/national level; (ii) Partnerships for improved community resilience; (iii) Business contributions to reduce risks through recovery (building back better); (iv) Collaborative efforts to enhance business resilience; (v) Collaborative efforts to enhance infrastructure resilience; and (vi) Partnerships for pre-disaster risk financing through agricultural insurance.

Enhancing disaster resilience globally requires the private sector to adopt best practices that prioritize preparedness, response, and recovery. Some of the key features for enhancing disaster resilience are as follows:

• Resources and Investments: The private sector brings substantial financial resources to the table. Companies have the ability to invest in disaster preparedness, response, and recovery efforts. Private sector investments can support the development of resilient infrastructure, early warning systems, and community-based initiatives that enhance disaster resilience.
• Innovation and Technology: Private companies are known for their innovation and technological advancements. They can develop and deploy cutting-edge solutions to address disaster risks. For example, the private sector has played a significant role in developing weather forecasting models, remote sensing technologies, and data analytics tools that improve early warning systems and enable timely response to disasters.
• Business Continuity and Supply Chain Management: Private sector organizations prioritize business continuity planning and supply chain management. They understand the importance of maintaining essential operations during disasters. By implementing robust business continuity strategies and ensuring supply chain resilience, companies contribute to the overall resilience of the communities and economies they operate in.
• Infrastructure Development: The private sector plays a crucial role in infrastructure development, including transportation, telecommunications, energy, and housing. By incorporating disaster-resistant design and construction practices, private companies can create infrastructure that is more resilient to natural hazards. This contributes to reducing the vulnerabilities of communities and critical services.
• Job Creation and Economic Recovery: Private sector investments and business activities contribute to job creation and economic growth. During disaster recovery, the private sector's ability to quickly restore operations, provide employment, and stimulate economic activity is vital. By facilitating the recovery and rebuilding process, the private sector supports the long-term resilience and well-being of affected communities.
• Corporate Social Responsibility: Many private sector organizations embrace corporate social responsibility (CSR) principles. They engage in philanthropic initiatives, community partnerships, and social programs that promote disaster resilience. Through CSR, businesses can support vulnerable communities, provide resources for preparedness, and contribute to the overall well-being of society.
• Expertise and Knowledge Sharing: Private sector organizations possess specialized expertise in various domains. They can provide valuable insights into risk assessment, mitigation strategies, and technology-driven solutions. The private sector's involvement in knowledge sharing platforms, research collaborations, and public-private partnerships allows for the exchange of best practices and lessons learned, fostering a collective effort to strengthen resilience.
• Public-Private Partnerships (PPPs): Collaboration between the public and private sectors through public-private partnerships (PPPs) is essential in disaster resilience. PPPs leverage the strengths of both sectors, enabling joint planning, resource sharing, and coordinated action. Through PPPs, the private sector can work closely with governments, humanitarian organizations, and local communities to enhance disaster preparedness, response, and recovery.

Thus, by adopting these best practices, the private sector can play a substantial role in enhancing disaster resilience globally. Through proactive risk management, collaboration, innovation, and social responsibility, private companies may contribute to building more resilient communities, economies, and ecosystems in the face of increasing disaster risks. The private sector's engagement in DRR will help mitigate the impacts of disasters on people's lives and livelihoods and further promote sustainable development.

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Source:

• APEC (2013) New Approaches on Public Private Partnerships for Disaster Resilience, 4th Emergency Preparedness Working Group Meeting.
• Chloe Demrovsky (2015) Public-Private Partnerships Are Essential to Attaining the nNext Level of Resilience in Japan and the Greater Global Community, White Paper: Thoughts from the Third UN World Conference on Disaster Risk Reduction (Disaster Recovery Institute International, 2015), https://www.preventionweb.net/files/57531_57531postsendai.pdf.
• King’s College (2012) Platforms for Private Sector-Humanitarian Collaboration.
• UNISDR (2005) Hyogo Framework for Action 2005–2015: Building the resilience of nations and communities to disasters. United Nations.
• UNISDR (2009) The Development of a public partnership framework and action plan for disaster risk reduction (DRR) in Asia.
• United Nations (1989) International Decade for Natural Disaster Reduction (A/RES/44/236) New York. United Nations.
• World Economic Forum (2008) Building Resilience to Natural Disasters: A Framework for Private Sector Engagement.