Person in a red shirt and navy cap facing a cloudy ocean shore as a hurricane looms.

A starter guide to disaster risk finance

What does 'good' disaster risk financing look like in practice? Disaster risk financing (DRF) covers the system of budgetary and financial mechanisms to credibly pay for a specific risk. In practice good DRF has the following traits:

Glossary of terms

We have a glossary with definitions and explanations of all major terms used in the world of disaster risk financing as an ongoing resource.

Man riding a bicycle through a flooded street lined with debris and damaged vehicles.

The state of pre-arranged finance for disasters

Looking ahead, uncertainty looms. This report captures developments up to 2024, but early 2025 saw sweeping cuts across major donor budgets. Their impact will only become visible in next year’s assessment.

‍Scaling up pre-arranged financing, making it accessible and affordable for all countries, and shining a brighter light on how it is deployed will determine whether this progress translates into protection for those who need it most.