Feed the Future
This project is part of the U.S. Government's global hunger and food security initiative.

Risk Management

Poor and low-income households in developing countries have few safety net mechanisms to rely on, and thus tend to be more vulnerable to shocks. These shocks can range from an accident, illness, the death of a family member to HIV/AIDS, natural disaster or conflict. Financial services can help clients manage their risk by helping them to maintain a consistent income stream,  build a savings base, and to insure productive assets such as land, livestock or equipment that might otherwise be liquidated and further undermine the household’s ability to recover from the shock. Risk management products include savings, insurance, and remittances, which could help households mitigate their risk and prevent the depletion of their assets in the case of shock.