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 moreDisaster risk management
Policies and actions to reduce disaster risks, manage impacts and strengthen resilience.
Contingent liabilities
Possible financial obligations that only become real if specific future events occur.
Risk layering
Using different financial instruments for different disaster frequencies.
Risk profile
Underlying risks that an organisation or country is exposed to and the extent to which they are mitigated by pre-arranged finance.
Contingent loan (or credit) and grants
A pre approved loan released automatically when agreed crisis conditions or triggers are met.
Development bank
A public financial institution providing loans, grants and expertise to support development goals.
