1. Technical Session 3 Private Sector Role in Disaster Risk Reduction: Public-Private Partnerships ISDR Asia Partnership 22 April 2014

2. KEY QUESTIONS How to incentivize the private sector to make risk-sensitive investments? 1.What are the drivers? – To build their own resilience – To contribute to the society’s resilience 2.What are the requirements? 3.Who should be responsible for reducing risks resulting from private sector activities?

3. ENGAGING THE PRIVATE SECTOR IN DISASTER RISK MANAGEMENT Background Paper to Technical Session 3

4. BACKGROUND 1.Economic Impacts of disasters on businesses 2.Role of the private sector in DRM 3.Change of paradigm in DRM: towards – more risk-sensitive investments, – conditional aid and – strategic partnerships

5. HFA & THE PRIVATE SECTOR 1.Reflections on HFA1: Remaining challenges – Legal – regulatory – Lack protection of GVC – Lack differential treatment to SMEs 2.Transition to HFA2: A transformative agenda – Integration of DRM in business management – Strengthen public policies – Broadening partnership

6. RECOMMENDATIONS FOR ACTION 1.Recognition: forming task forces, publish reference guide 2.Promotion of the enabling environment: publish resource books, integration of risk information in investment promotional packages 3.Promoting multi-sectoral collaboration and partnerships: establish dialogue platforms at regional, national and local levels

7. SESSION STRUCTURE Technical Session 3

8. SPEAKERS LINEUP Chair: Ministry of Industry, Thailand Keynote: Global Champion on PPP Presentation of background paper: ESCAP Panelists: – Kokusai Kogyo, Chair of the ISDR - PSAG – Australian Business Association – Loxley, ESCAP Business Advisory Council – Major industry

9. KEY MESSAGES Proposed phrases

10. “ Disaster risk management is good for business” “Responsible and resilient business is profitable business” “Business resilience is the concern of the private sector as much as it is of the government” “Government plays key role in providing the enabling environment for private sector’s risk- informed investments ”

11. BACK UP SLIDES (previous presentation from 16 September 2013)

12. http://apbf.unescap.org/ Where — This year, APBF 2013 is scheduled to be held in Bangkok, Thailand at the United Nations Conference Center. When — 25 - 26 November 2013 (please note that the Sixth Meeting of the ESCAP Business Advisory Council Meeting is a closed session by invitation only). Who — APBF participants consist of business, government, academic, civil society and other key stakeholder from across the Asia- Pacific

13. Simple Overview: DRR in the Private Sector Hazards Vulnerability Capacity Gaps RISKS RISK MANAGEMENT and MITIGATION Reduction/Adaptation Consequence Management RESILIENCE BUSINESS STRATEGIES & RISK GOVERNANCE Good PracticesConcepts Damage & Losses Preparation & Response Policy Recommendation s Drivers Partnership Accountability ENVIRO NMENT ECO NOMY SOCIAL Regulatory & Incentive Frameworks Event/Crisi s Risk-informed investments

14. Consultative Outline Regional Study: Provide academic backing for policy recommendations – Aligned with private sector needs and special interests What Core Topics Of Coverage? – Situation Analysis: Private Sector and Overlapping Risks – Disaster Risks For Business – Business Strategies and Risk Governance – Best Practices and Methodologies of Incentive Frameworks – Policy Recommendations (based on 4 areas of coverage listed above) How: ADPC & ESCAP with private sector’s active leadership and contributions

15. Methodology Literature Review First-hand Data Gathering – Surveys – Expert Interviews Economic Analysis and Modeling Case Studies – Partnership, risk- informed investments, sectoral practices, etc.

16. Possible Content: 1. Disaster Risks For Business – Disaster risk theory Dimensions of disaster risks – Impacts and probabilities of disasters; economic, environmental and geographical characteristics/factors Exposure, risk reduction, resilience – Global value chains (GVCs) Increasing importance in Asia & the Pacific, risk matrix – Business strategies and operational practices Crisis planning and management, risk hedging, diversified sourcing, operations and logistics, advanced ICT applications, standards, norms and principles – Risk governance Risk identification, evaluation and monitoring, reduction measures

17. 2. Business Strategies & Risk Governance – Developing a Rating system: e.g. indicators of preparedness, sustainability and resilience – Measuring resilience: Matrices of the top 10-15 disaster prone and the top 10 best resilient countries in Asia and the Pacific based on – Legal, regulatory and policy frameworks, including fiscal management – Institutional frameworks, including stakeholder mapping – International or regional cooperation – Assessing resilience Assessment businesses’ overall preparedness and resilience level Differential considerations between SMEs and large businesses

18. 3. Incentive Frameworks – Defining government’s role and responsibilities – Assessing incentive frameworks in Asia-Pacific Monetary measures Taxation & grants; insurance pools and risk sharing; investment incentives; etc. Non-monetary measures Infrastructure development; technical assistance; industrial zones and estates; business continuity plans; etc. – Economic impacts of incentive frameworks – Required regulatory and institutional frameworks

19. Multi-stakeholder Consultation Questions? Based on the suggested framework, are there any particular areas which correspond to your business’ DRR needs or strategies? What areas of this framework do not meet the needs or interests of your organization? What topics would you suggest to expand on? Are there any topics which were not covered that you feel are important? What are the biggest challenges facing your organizations’ in relation to DRR? Other comments or suggestions? Framework Review 1.Situation Analysis: Private Sector and Overlapping Risks 2.Disaster Risks For Business 3.Business Strategies and Risk Governance 4.Best Practices and Methodologies of Incentive Frameworks 5.Policy Recommendations (based on 4 areas of coverage listed above)