Risk management mechanisms and strategies seek to either leverage the risk abatement properties of well-managed ecosystems or use various risk management mechanisms to improve the conditions or conservation of natural ecosystems. Managing risks is a challenging endeavor for individuals, localities, and businesses and the insurance industry has become extremely experienced at developing and selling a range of risk instruments to facilitate risk management such as damage, liability, and health insurance. Other tools are designed for managing financial risks and can be combined with investments to facilitate transactions that would have not been possible without managing risk through instruments such as loan guarantees and payment for success programs (also known as “impact bonds”). The combination of risk management instruments and/or various return-based investments instruments can produce what is termed “blended finance” which is considered a strategy of financial risk management that facilitates private sector investment in nature.