investments, when they connect safe areas to the opportunities and amenities that currently exist in risky areas.

Providing a strong and holistic risk management framework in a country, region, or city makes it possible for all actors to take the risks that are desirable, avoiding excessive risk-taking without constraining growth and development. It also makes it possible to deal with the rare but unavoidable cases where a physical hazard is so violent that it exceeds protection capabilities and causes large losses. In other words, the same DRM policy which reduces welfare losses from a disaster can also provide benefits even before a disaster strikes.

# **6. References**

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