This report summarizes the findings of aunique panel survey of rural households in Nepal, conductedbetween 2016 and 2018 by the World Bank with financing fromthe UK Department for International Development (DfID). Thesurvey covered six thousand households in rural andperi-urban areas nationwide. The objective of the survey wasto better understand the exposure of households to majornatural and socio-economic shocks, their means of copingwith these shocks, and the impact of shocks on householdwelfare. While most households appear to be able towithstand a range of smaller shocks to assets and income,larger and more covariate shocks continue to pose a majorrisk to household assets, food security and overall welfare.These effects persist for up to two years following theshock. The authors findings point to the importance ofhaving established formal social assistance to help thechronically poor build their resilience and assist otherhouseholds that are normally non-poor to cope in the eventof major shocks.