In other words, although characterized by sufficient consumption prospects for the future, risk-induced vulnerable households face the threat of poverty because of risk exposure. The VEP method does not model risk explicitly, but assumes that the observed inter-household distribution of consumption at a point in time represents the future distribution of consumption across states of nature for each household.13 It also overlooks the key role of the behavioral response to risk. To avoid these shortcomings, in section 4 we provided additional insights into the risk-induced sub-component of the VEP to infer the relative importance of the various components of vulnerability (non-stochastic, risk induced and shocks).