LIVELIHOOD ASSET
Financial (f)
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Financial resources refers to money that can be accessed via available stocks (such as cash and bank savings, liquid assets such as livestock and jewelry, insurance and credit availability), regular inflows such as income earnings, pension, state transfers and remittance and income in-kind. Financial resources that support community resilience at all times (including on a daily basis, pre and post disasters and in a changing environment and climate in the long term) have the following combined features: improves prevention, preparedness and management of risks; microfinance to enable ‘smart’ risk taking (e.g. diversifying income sources), enables risk transfer (insurance) and risk reserves (savings). While access to cash may not appear to factor significantly to the resilience of semi-subsistent or remote communities, it nevertheless expands climate and disaster response options, 4 particularly when the capacity of natural resource and infrastructure to support livelihood needs has been degraded
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