Figure caption

Figure 17.4 |  A graphical representation of layered risk management. Risks can be reduced or managed by risk finance (insurance and other means), but some residual risk remains, particularly for high-impact unavoided and unavoidable risk, which is retained implicitly or explicitly. Where incremental and in situ adaptation is not effective in managing risks, transformational adaptation supports systemic change. Risk management occurs in national systems, and regional insurance systems have stimulated regional collaboration. Particularly for high impact risks and impacts in specific events, international assistance is required. Policy domains on disaster risk reduction (DRR) and climate change adaptation (CCA) as well as Loss and Damage overlap in their governance of risk management. Figure building on Mechler et al. (2014); Cummins and Mahul (2009); Lal et al. (2012); Mechler and Deubelli (2021).