The role of disasters in building and maintaining the cycle of poverty and undermining development progress is increasingly recognized as a major global challenge. While many recent disasters are related to geophysical events (earthquakes, tsunamis, etc.), approximately 70% are weather related and this proportion is likely to grow as climate change processes increase the variability and intensity of weather events. As a result, cost-effective strategies for reducing disaster risk are central both to meeting development goals and responding to the challenges climate change will present all sectors of society, particularly the poor, women, and other vulnerable groups. The purpose of this summary report is to present practical approaches for identifying, prioritizing, and ultimately demonstrating the costs and benefits of tangible interventions to reduce disaster risks, particularly those likely to emerge as a consequence of climate change. Such practical approaches are essential if governments, humanitarian organizations, the private sector and local communities are going to invest substantial resources in reducing both current disaster risks and those anticipated as a consequence of climate change. We outline key elements and the methodologies associated with them for understanding risk and vulnerability within communities, identifying potential response strategies and evaluating the qualitative costs and benefits associated with them. The approach is based on a shared learning process that moves iteratively from initial scoping through systematic vulnerability analysis, and identification of potential risk reduction options to qualitative and quantitative evaluation of their costs and benefits as a basis for decision-making. Keywords: Economics; Resilience and Climate Change Adaptation; Social Vulnerability