Changunarayan Municipality of Bhaktapur District, Nepal, faces multiple threats due to rapid urbanization, sloppy terrain, and fragile geology. Low and middle-income populations, particularly women, children, marginalized people, and older people, are highly impacted by the disasters. Climate change is emerging as an additional stress impacting their livelihoods and increasing vulnerability. The problem is compounded by the municipality's poor understanding of urban disaster risk, weak disaster preparedness, emergency response, and low disaster preparedness awareness among the local people. This paper discusses the multifaceted external approach to the municipality's formal and informal DRR management practices. ISET-Nepal and Dan Church Aid, in partnership with the Changunarayan Municipality, designed a project called “Risk to Resilience through Collective Local Actions” to implement Sustainable Development Goal 11 as a point of entry in Changunarayan Municipality. The project aims to reduce people's vulnerability, promote urban resilience, and institutionalize the municipality's DRR management system by institutionalizing formal and informal institutions. Changunarayan Municipality’s journey toward robust DRR/M requires formal policies, grassroots engagement, and adaptive learning. The project successfully impacted local policies, supported the development of new policies, and produced and disseminated knowledge products to reach rightsholders. Three case studies of successful institutionalization of the DRR/M in the municipality are presented. The first case discusses the process of institutionalization of a UNDRR-prepared scorecard to assess, analyze, and rank the municipality in disaster management. The second and third cases are the two informal green enterprises supported to build economic resilience, enabling access to economic opportunities and integrating market systems through a digital medium. In particular, the local government has institutionalized some of the activities that we initiated. The co-creation has also enabled the municipality to increase its budget for DRR/Climate Change this year and leveraged funds to scale up the activities.