Disaster risks intersect with a wide range of environmental, social, and governance risks, causing human, economic, and financial losses, and social impacts. Disasters have the highest impact on the poor and the vulnerable sections, as they lack resources to ward off the various challenges or alternatively settle in safer places. Government relief efforts and interventions from humanitarian agencies may not suffice for the extent of damages caused. In addition to the fatalities and damages to productive assets, losses to public properties can push governments to restore infrastructure facilities at the earliest and provide rehabilitation measures to the affected populace. Developing countries are vulnerable to meeting these challenges and need significant time to recover from such impacts. The ‘risk’ and its quantification and structuring need to be understood first while studying disaster risk financing and insurance. This includes a variety of measurements to evaluate the capacity to understand and reduce risks, respond, recover from catastrophes, and provide financial protection and risk transfer. The various risk modeling methodologies that are useful and help in risk quantification are discussed in the next section, including the limitations and aspects of climate change.