Glossary

Contingent loan (or credit) and grants

A type of pre-arranged financing whereby a loan or grant is approved in advance of a crisis and is guaranteed to be provided to a specific implementer when a specific pre-identified trigger condition is met (Centre for Disaster Protection).

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This working paper presents a framework that compares contingent loans, grants from multilateral development banks, catastrophe bonds, and insurance provided through regional risk pools.

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This working paper asks what is required for social protection systems to deliver timely, predictable, well-targeted and cost-effective shock response to disasters.

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This insight paper provides an overview of the key features of debt pause clauses, also known as climate resilient debt clauses.

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This brief forms part of a cross-country study on the opportunity cost of reallocating budgets in response to disasters.

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other key terms

Early warning system

Systems that monitor hazards and share information early, so people can act in time.

Sovereign insurance

Sovereign insurance is insurance coverage purchased by a national government to protect its budget against the financial impacts of disasters.

Parametric insurance

Insurance that pays when an agreed indicator reaches a set level, not actual losses.

Accountability

Being responsible for decisions and resources, listening to affected people, and accepting consequences for actions taken.

Disaster risk finance diagnostic

An analytical assessment of a country’s disaster risk profile.

Disaster risk management

Policies and actions to reduce disaster risks, manage impacts and strengthen resilience.