Reducing risk is critical to sustainable development. It is also indispensable in reducing the humanitarian burden. Disasters affect 350 million people on average each year. An estimated 60% of disasters occur in fragile areas, where the impact of hazards and conflict often collide, exacerbating poverty, food insecurity and vulnerability.
Investing in risk reduction and building resilience saves more than lives and livelihoods it is also a good return on investment. Every US$1 invested in risk reduction and prevention can save up to US$15 in post-disaster recovery. Every US$1 invested in making infrastructure disaster-resilient saves US$4 in reconstruction.
Given our extraordinary mandate and the multi-dimensional nature of risk and the cascading impacts, UNDRR’s average recurring budget is very small. We operate efficiently, looking to invest where our work has the greatest impact and presents the best value for money.
Over 99 per cent of UNDRR’s work is funded through voluntary contributions by a diverse donor base.
UNDRR encourages increased international cooperation to build resilience in areas that are most at risk, as well as increased voluntary financial contributions to UNDRR through the United Nations Trust Fund for Disaster Risk Reduction, in line with the report of the United Nations Secretary-General on the implementation of the Sendai Framework.
 UNOCHA. 2018. World Humanitarian Data and Trends 2018.
 “Hallegatte, Stephane; Bangalore, Mook; Bonzanigo, Laura; Fay, Marianne; Kane, Tamaro; Narloch, Ulf;
Rozenberg, Julie; Treguer, David; Vogt-Schilb, Adrien. 2016. Shock Waves : Managing the Impacts of Climate Change on Poverty. Climate Change and Development;. Washington, DC: World Bank. © World Bank.
Flexible contributions are essential for UNDRR. Funding that is not designated for a specific geographic area or programme is referred to as core funding or unearmarked funding. Core funding is vital as it enables UNDRR to allocate funds to strategic result areas based on requirements. In 2020, UNDRR received 46% of the funding as unearmarked support.
Donors who are not able to provide core support are encouraged to provide support in as flexible a manner as possible by earmarking at the level of Strategic Objective or region, allowing UNDRR maximum flexibility and thus efficient use of resources.
Contributions honored early in the financial year allow UNDRR to start implementing the Work Plan at the onset of the year and helps to avoid delays in implementation.
Predicable funding allows UNDRR to plan strategically and effectively deliver on our mandate on a multi-year planning cycle. UNDRR counts on continued support from donors for the funding that enables us to support countries to invest in multi-year risk-proofed sustainable development. UNDRR advocates for predictable funding through multi-year donor agreements.
Donors in 2020 included governments, the private sector, foundations and other institutions.