This initiative, completed in January 2007, has assessed opportunities for the involvement of the private financial sector in managing the risk of a major Foreign Animal Disease (FAD) outbreak.

The magnitude of the costs in FAD outbreaks around the world has demonstrated the need for private sector financial involvement in managing the economic impact. The Interim Project Report and the Discussion Paper explore some of the prerequisites for involvement of the financial industry. These include defined risks, defined role of government and adequate management of risk by the industry.

The project explored financial tools used in other jurisdictions and the four pillars of risk management – risk avoidance, risk reduction, risk transfer and risk acceptance – in the process of the project. The Discussion Paper is the final paper of the project and it proposes next steps in the development of private sector financial tools for the industry to be used in a complementary way to financial support from governments and the risk management strategies that can be applied by industry.