International Day For Disaster Risk Reduction, Take Steps To Safeguard Against Fire Risks

• Increasing Disaster Costs

Extreme weather conditions and investment plans that overlook disaster risks have increased exposure to unprecedented disasters. These investment plans include both public and private initiatives that fail to account for potential risks, such as fire hazards and floods.

According to the Global Assessment Report on Disaster Risk Reduction 2025, direct disaster costs have increased to $202 billion annually. And the true costs, including related impacts, are $2.3 trillion, which is actually 11 times higher than the direct costs.

This financial burden increases debt for growing economies, lowers incomes, and leads to more humanitarian crises.

• Low Funding for Disaster Risk Reduction(DRR)

While disaster costs continue to rise, financial preparedness remains insufficient in most countries across the world. In many countries, less than 1% of the public budget (sufficient to address only 10-25% of the needs) has been allocated for disaster risk reduction.

Also, international funding from developed countries has been limited.

The International Day for Disaster Risk Reduction 2025 highlights two significant actions:

Increase Funding for Disaster Risk Reduction

• Policymakers need to prioritise DRR funding in national budgets.
• International Organisations and Humanitarian Agencies need to increase funding for DRR.
• Financial institutions and businesses need to support DRR funding through public-private partnerships.

Ensure Investments Integrate Risk Reduction Strategies

• Businesses and investors need to consider potential risks and implement risk reduction strategies, such as fire safety systems and earthquake-resistant infrastructure.
• Advocates and researchers need to hold the stakeholders accountable for integrating DRR strategies and lead innovative efforts.

• India has allocated USD 28 billion towards DRR financing. This is expected to increase by 50% to USD 42 billion in 2026.
• The Philippines has increased its National Disaster Risk Reduction and Management Fund by 2.5% to USD 368 million in 2025 from 2024.
• Chile has enforced stringent regulations and legal frameworks mandating seismic-resistant building codes.
• Bhutan has developed a National Plan for Infrastructure Resilience, integrating it with its 13th Five-Year Plan (2024-2025).

• According to the World Bank, in developing countries, every $1 invested in disaster-resilience saves $4 in economic losses.
• Investing in early warning systems that can issue a warning 24 hours before a hazard strikes can reduce the damage by up to 30%.
• Proactive investments in resilience help organisations secure their business operations and significantly reduce disaster-related losses.

• Low funding for disaster risk reduction and investment plans that fail to implement risk reduction strategies can lead to higher disaster-related losses.
• The International Day for Disaster Risk Reduction (IDDRR) 2025, themed “Fund Resilience, Not Disasters”, focuses on taking proactive measures to minimise risks and potential losses.

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