In all parts of the world, farmers face myriad risks. Not only do farmers face the same risks that we all face — disability, health crisis, etc. — but the additional risks of being dependent on external factors like the weather for their livelihoods. In Bangladesh those risks are magnified, in particular due to recurrent floods and droughts. These high uninsured risks take a heavy toll on welfare, productivity, income, and asset ownership. Many farmers and rural inhabitants avoid potentially profitable but risky investments as a self-insurance against possible shocks. Missed opportunities for growth keep people in poverty.