How it works
Start Ready is based on the principle of national and local institutions and NGOs coming together to collectively analyse and quantify risks in anticipation of expected crises.
By quantifying risks in this way we are able to pre-position the correct amount of financing needed and to create a balanced portfolio of risks with different “return periods” (probability of occurring within a particular timeframe). These are known as “actuarial advantages” and allow us to make the most efficient use of the funds available.
This disaster risk financing process runs on an annual cycle. You can find detailed information in our information sheet Start Ready – How it works and in the Start Ready handbook.
1. Networks of members work together to design and build a disaster risk financing system, analysing their risks and creating contingency plans. We have developed a Building Blocks framework to guide them through this process. These networks are then eligible to apply for Start Ready coverage.
2. Donors contribute funds in advance, creating a pool of funds that are managed by the Start Ready Governance Committee. The Committee looks at the applications and structures the funding. It then issues coverage certificates lasting for 12 months to each successful network.
3. The pool of funds is live for 12 months. During this period, risks are monitored during each country’s risk season (such as flooding, drought, heatwave or cyclones). Each disaster risk financing system will have a contingency plan that defines the danger thresholds for these risks. When these thresholds are is met, funding is immediately released.