Glossary

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.

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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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other key terms

Development bank

A public financial institution providing loans, grants and expertise to support development goals.

Disaster risk finance diagnostic

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

Financial Flows

Financial flows refer to the movement of funds for disaster risk reduction (DRR) and response, covering planned and unplanned sources.

Pre-arranged financing

Financing approved before crises that is released automatically when agreed triggers are met.

Crisis risk

The likelihood of harm or loss from crises shaped by hazards, exposure, vulnerability and capacity.

Total crisis financing

Development funding focused mainly on crisis prevention, preparedness and response activities.