DESIGN CHALLENGE
How might we redesign financial relationships for more resiliency in the 21st Century?
$#!% happens.
Then things change.
The world has worked that way since the beginning of time.
But what happens when $#!% happens to something that wasn’t made to change?
Good question.
Financial tools of the 20th Century weren’t designed to deal with change because—well—things didn’t change much when they were made.
For example, in the 1950s, it was safe for bankers to assume someone looking for a mortgage would have the same job (or better) for the 15-30 year term of the mortgage. It was also relatively easy to assess how likely “100 year floods” would come to damage that property.
But today things change—and change fast
From wildfires to world pandemics—$#!% has been happening faster than ever—and frankly—our 20th Century financial tools won’t be able to rise to the occasion.
$#!% happens.
We know that (and we can’t change that).
But we can change how finance reacts and the tools finance uses to bounce back.
STUDENT DESIGN WORK
Four student teams embarked on the design challenge in the Spring of 2020. While managing unexpected events and constraints for their living and learning due to COVID-19, they came together with passion and curiosity to reimagine resilient relationships. Their learning experience was situated in a most turbulent time. They worked without post-it notes and sharpies in hand, across screens rather than in person, across time zones and amidst the uprising in the wake of George Floyd's death.
The objective was not to deliver something finished, but rather insights for where to start. Below you will find their work and we welcome you to build on their insight and/or follow up with the students and teaching team directly.
TEAM 1
California Communities for Financial Resilience
The Small Business Association’s Paycheck Protection Program (PPP) – intended to support small businesses with payroll during the COVID-19 pandemic – exposed the extreme inequities of disaster relief programs in California and the U.S. more broadly. It was evident from the “winners and losers” of the first round of loans that one’s network and resources…
Equitable Resilience Program
TEAM 2
When beginning to explore the possibilities for post-disaster finance reform, we turned to several restaurant owners impacted by the pandemic. Their establishments are meaningful in our lives–on our Stanford campus, on our home town streets, where we go to meet a friend, for a business meeting or out to celebrate a special occasion…
TEAM 3
Financial Literacy: Building Small Business Resilience
The economic challenge to small businesses from the pandemic shutdowns is grave and unprecedented; according to Forbes, it is likely that less than 40% of small businesses can survive an economic crisis that lasts for six months. Regulators made aid available to businesses. However, data released by the Small Business Administration…
TEAM 4
Sure Assist: A one stop shop for financial assistance
The COVID-19 crisis has emphasized the desperately needed change in our current processes for governmental financial assistance. To better understand the system and how the opinions and experiences of different stakeholders interact within the system, we conducted numerous empathy interviews. The individuals we spoke with fell into three main categories…
PRINCIPAL PARTNER
California Office of Emergency Services (OES)
California needs new thinking about finance, insurance and the ways to build and rebuild for resilience across California’s diverse communities.
With over 38 million residents (12% of the population), the State of California is the most populous state in the nation and has the third largest land area among the states (163,695 square miles). California is culturally, ethnically, economically, ecologically, and politically diverse, and maintains the eighth largest economy in the world with 13 percent of the U.S. gross domestic product.
California also faces numerous risks and threats to our people, property, economy, environment and is prone to earthquakes, floods, significant wildfires, prolonged drought impacts, public health emergencies, cybersecurity attacks, agricultural and animal disasters, as well threats to homeland security.
Cal OES takes a proactive approach to addressing these risks, threats, and vulnerabilities that form the basis of our mission and has been tested through real events, as well as comprehensive exercises that help us maintain our state of readiness and plan for and mitigate impacts.
Their mission is to protect lives and property, build capabilities, and support our communities for a resilient California. Today, Cal OES performs its broader mission by administering numerous programs that support our stakeholders, protect our communities, and help create a resilient California.
Adapted from California Office of Emergency Services (OES), About OES webpage
