Page - 98 - in Loss and Damage from Climate Change - Concepts, Methods and Policy Options

98 T.Schinkoet al. Box4.1AClimateRiskManagement (CRM)frameworkforIndia Onbehalf of theGermanFederalMinistry forEconomicCooperationandDevelopment (BMZ), theGermandevelopmentassistanceagencyGIZwithpartnersdevelopedaCRMframework that canbeutilisedtoassessclimate-relatedrisksandidentifymanagementmeasuresatvariousscales. In close cooperationwith IIASA,KPMGand IITDelhi, a six step process operationalising the CRMprocess at scale was developed (Fig. 4.7). The CRMprocess is embedded in a learning framework,whichallows forupdatingdecisionsover timewithmountingevidenceand insights. TraditionalDRRandCCApolicy typicallyoperatesvia incrementaladjustments toexistingman- agement approaches.While such incremental learning is important in the short term, climate- related (residual) risks require a particular focus on locally-applicable bottom-up techniques for understandingrisksandriskmanagementinterventions.Suchtechniquesare,forexample,Vulner- abilityCapacityAssessments (VCAs) and community-led focusgroups. In the faceoffinancial, technical and institutional constraints, fundamental and transformative learning isneeded.These advanced learning loops aimat achieving the required adjustments ofmanagement processes at national andsubnational levels inorder tobeable todealwith increasing riskover time. Step 1: Step 2: Step 3: Step 4: Step 5: Step 6: Triple-loop learning: (1) Incremental (2) Fundamental (3) Transformational Evaluate risk tolerance and limits —Conduct risk segregation into acceptable, tolerable and intolerable Identify risk— Conduct a qualitative and quantitative risk assessment Develop context specific methodology to assess risk of the system of interest Identify system of interest (sector, region) — Conduct hotspot and capacity analysis Identify and assess feasible options to avert, minimize and address climate-related residual risk Status quo — Assess the information needs and objectives of the overall CRM framework Transformative Fundamental Incremental Fig.4.7 Climateriskmanagement(CRM)sixstepapproach. SourceGIZetal.(2018unpublished) An exemplary application of the comprehensive framework to Tamil Nadu in India (cyclone and flood risk) served to test themethodological approach and glean its usefulness at state and local levels.Theapplication showed that risks areon the risedue toclimate and socio-economic drivers, and that risks are significantly affecting key objectives of households and the public sector. Furthermore, risk responses by farmers and households are largely of incremental, yet increasinglyalsoof fundamental and importantly transformativenature.GovernmentalDRRand CCA institutionsworkwellwithin their remit to provide incremental assistance, yet are usually not charged todealwith fundamental and transformative interventions.Theassessment revealed that the riskmanagementpolicyoptionsspaceneedsmoreattentionandfurtherdeliberationwith those at risk and in charge to deploy interventions with public support from state, national to international levels.