This document presents innovations inagricultural risk management for natural disaster risk, withthe focus on defining practical roles for governments ofdeveloping countries and the World Bank in developing riskmanagement strategies. The paper includes the followingcontent: introduction; risk and risk management inagriculture, including informal and formal mechanisms;approaches to agricultural risk in developed countries;innovation in managing production risk - index insurance;new approaches to agricultural risk management in developingcountries; from theory to practice: pilot projects foragricultural risk transfer in developing countries; andpotential roles for governments and the World Bank.