There have been considerable recent efforts to improve risk management by using index-based risk transfer products related to rainfall and other climate variables, options and futures in international commodity markets, and other innovations. Overwhelmingly, the focus is on covariate risks, yet a growing body of evidence suggests that idiosyncratic risk may be the greater problem in rural Africa and Asia. This project provides research and suggestions for innovations in three countries where idiosyncratic risk and poverty are linked concerns: Bangladesh, Ethiopia and Ghana, with the focus on understanding how idiosyncratic risk impacts the asset holdings of households and their productivity. The goal is to identify mechanisms that allow these households to minimize risk and cope with shocks in order to avoid or even climb out of chronic poverty.