Due to its geographical and climatic conditions, Cambodia is one of the most disaster-prone countries in the world. With the impacts of climate change, floods, droughts, and typhoons are increasing in frequency and causing severe damage, affecting food security, livelihoods, health care, and education.

The role of financial instruments is to enable the rapid mobilization of resources in the event of a disaster and to provide protection for the contractor’s finances. Actors can combine various risk retention and risk transfer financial instruments to meet the costs of emergency care and post-disaster recovery.