Disaster risk transfer involves transferring financial risks associated with disasters from individuals, communities, or governments to insurance companies, reinsurance markets, or other risk$-$bearing entities. Explore the theoretical foundations of disaster risk transfer mechanisms, including insurance, catastrophe bonds, and risk pooling arrangements. How do policymakers and practitioners apply theoretical models of disaster risk transfer to develop risk financing strategies, improve financial resilience, and ensure timely and adequate financial assistance for disaster recovery and reconstruction efforts?