Enhanced trade and investments have been one of the significant developments of regional integration in Asia during the recent decades. Countries that are successful in attracting global investments are also highly vulnerable to natural hazards and related losses. This has opened up doors to an important, inescapable and hidden phenomenon of ‘globalization of local risks’. There is more chance now for domestic risks (i.e. risks from natural hazards, internal security, political uncertainty, social insecurity) to become global. Foreign direct investments (FDI) affected by local risks could multiply risks in magnitude and spill over into international markets with financial implications, affect the credibility of companies, and the credibility of the countries where investments are affected. Understanding and addressing such globalization of local risks is even more important today as more countries in Asia are attracting foreign investments but are yet to fully improve their disaster risk reduction and climate change readiness. In this context, important questions for the foreign investing entities are a) are the investments fully aware about the local risks, b) what measures have to be taken, including the criteria employed in conducting risk assessments, to mitigate the local risks from spilling over beyond the boundaries of countries where investments took place, and c) what it means for the risk assessments and risk communication?
This is a poster presented at the STS Forum 2018, 7-9th Oct 2018.