Cost multiple
The cost multiple measures the average amount a government pays to receive USD 1 of payout from a financing instrument over its lifetime, expressed in present value terms.
This working paper presents a framework that compares contingent loans, grants from multilateral development banks, catastrophe bonds, and insurance provided through regional risk pools.
Read moreShock-responsive social protection
Social protection systems adapted to scale quickly when large shocks affect many people.
Total crisis financing
Development funding focused mainly on crisis prevention, preparedness and response activities.
Trigger
A predefined threshold that activates payments or actions within risk financing mechanisms.
Climate resilient debt clause or 'debt pause clause'
A provision in sovereign debt contracts that enables the borrower to temporarily stop repaying debt service for a pre-agreed period when a predefined event occurs.
Accountability
Being responsible for decisions and resources, listening to affected people, and accepting consequences for actions taken.
Early warning system
Systems that monitor hazards and share information early, so people can act in time.
