Social Policy as Social Risk Management

With the growing sophistication in social policy instruments and the advances made in the analysis of their impact, it became clear that the analytical separation of social policy and social security policy from other policy areas is increasingly difficult. The paper discusses a new analytical approach based on the social management of risks. It redefines social policy as public interventions to assist individuals and households to cope with their risks. The conceptual framework starts with the notion of main needs and defines and subdivides the risks threatening the satisfaction of these main needs. An important feature of the framework is that social policy is not only linked to the satisfaction of the main needs at a certain moment, but to the risk that, at a certain moment in the life-course of an individual, the needs cannot not be satisfied. Social policy is then no longer solely focussed on the guaranteeing that all individuals in an economy can fulfil their main needs in a static framework. Quite the contrary, social policy is focused on preventing contingencies to materialize, on mitigating the effects before they materialize and on coping with the unfortunate moment bad luck, shocks or unfortunate events strike. The social risk management framework rests on the observation that the satisfaction of main needs and the management of risks, is not the sole responsibility of public authorities. Social welfare is produced by at least three institutions symbolically summarized as the social welfare triangle of which markets, families and public authorities form the corner points.