Social risk management: A new conceptual framework for social protection, and beyond

This paper proposes a new definition and conceptual framework for Social Pr otection grounded in Social Risk Management. The concept repositions the tr aditional areas of Social Protection (labor market intervention, social ins urance and social safety nets) in a framework that includes three strategie s to deal with risk (prevention, mitigation and coping), three levels of fo rmality of risk management (informal, market-based, public) and many actors (individuals, households, communities, NGOs, governments at various levels and international organizations) against the background of asymmetric info rmation and different types of risk. This expanded view of Social Protectio n emphasizes the double role of risk management instruments-protecting basi c livelihood as well as promoting risk taking. It focuses specifically on t he poor since they are the most vulnerable to risk and typically lack appro priate risk management instruments, which constrains them from engaging in riskier but also higher return activities and hence gradually moving out of chronic poverty.