What is Social Protection?

Idiosyncratic risks

"The capacity of individuals, households and communities to handle risk and the appropriate risk management instrument to be applied depend on the characteristics of risks: their sources, correlation, frequency and intensity. The sources of risk may be natural (for example, floods) or the result of human activity (for example, inflation resulting from economic policy); risks can be uncorrelated (idiosyncratic) or correlated among individuals (covariant), over time (repeated) or with other risks (bunched); and they can have low frequency but severe welfare effects (catastrophic) or high frequency but low welfare effects (non-catastrophic). The main sources of risk and the degree of covariance can range from purely idiosyncratic (micro or individually specific), to regionally covariant (meso), to nationwide covariant (macro) events.”
 
Source: Holzmann, R. 2001. “Risk and Vulnerability: The Forward Looking Role of Social Protection in a Globalizing World”. Washington, DC. The World Bank. < https://documents.worldbank.org/en/publication/documents-reports/documen.... Accessed 13 August 2020.