Editing Test:SRCCL/Chapter-1 (section)

== 1.3.4 Risk management ==

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Risk management refers to plans, actions, strategies or policies to reduce the likelihood and/or magnitude of adverse potential consequences, based on assessed or perceived risks. Insurance and early warning systems are examples of risk management, but risk can also be reduced (or resilience enhanced) through a broad set of options ranging from seed sovereignty, livelihood diversification, to reducing land loss through urban sprawl. Early warning systems support farmer decision-making on management strategies (Section 1.2) and are a good example of an adaptation measure with mitigation co-benefits such as reducing carbon losses (Section 1.3.6). Primarily designed to avoid yield losses, early warning systems also support fire management strategies in forest ecosystems, which prevents financial as well as carbon losses (de Groot et al. 2015 <sup>[[#fn:r788|788]]</sup> ). Given that over recent decades on average around 10% of cereal production was lost through extreme weather events (Lesk et al. 2016 <sup>[[#fn:r790|790]]</sup> ), where available and affordable, insurance can buffer farmers and foresters against the financial losses incurred through such weather and other (fire, pests) extremes (Falco et al. 2014 <sup>[[#fn:r791|791]]</sup> ) (Sections 7.2 and 7.4). Decisions to take up insurance are influenced by a range of factors such as the removal of subsidies or targeted education (Falco et al. 2014). Enhancing access and affordability of insurance in low-income countries is a specific objective of the UNFCCC (Linnerooth-Bayer and Mechler 2006 <sup>[[#fn:r792|792]]</sup> ). A global mitigation co-benefit of insurance schemes may also include incentives for future risk reduction (Surminski and Oramas-Dorta 2014 <sup>[[#fn:r793|793]]</sup> ).

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