The Philippines is highly vulnerable to natural disasters due to its location in the Pacific Ring of Fire. It experiences 20 earthquakes per day on average and is hit by 18-22 typhoons annually. Many areas have light, vulnerable housing that cannot withstand hazards. Flooding is a major problem due to unregulated development, deforestation, and other factors. The country loses an average of 15 billion pesos annually to direct damages from disasters, diverting funds from development programs. The Philippines ranks 3rd out of 173 countries on the World Risk Index due to its high exposure and vulnerability to natural hazards.