This paper examines households exposure to risk in rural Mozambique and its ef fect on their social indicators such as the possession of consumer goods (bicycles, mo torcycles, cellphones), hygiene habits, health conditions (anemia and malaria), child mortality, household head literacy and storage capacity. The usage of consumption smoothing mechanisms is analyzed in regards to its effect on both the variability of income and food security and more lasting social outcomes that were present in the original data set (consumer good possession, hygiene conditions, storage capacity and the head s literacy). I find that farmers in Mozambique are extremely vulner able to risk but the time-span of these fluctuations is not the same throughout the whole country. Higher monthly income risk is found to be linked with overall worse social indicators. Furthermore, the usage of Risk Management mechanisms, includ ing crop diversification, irrigation, and occupation diversification from both the head and other household members, is shown to be associated with lower variations of in come and food security. Risk Coping is also assessed by using Townsend s (1995) full risk-sharing model, which indicates risk pooling among individuals in the same geographical area is quite high. Both Risk Management and Risk Coping mecha nisms are found to attenuate risk s effect on health, educational and economic status indicators.