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

Prevention

Actions taken to avoid or reduce the impacts of future crises and hazards.

Resilience

The ability to withstand shocks, adapt, recover and continue functioning over time.

Shock-responsive social protection

Social protection systems adapted to scale quickly when large shocks affect many people.

International crisis financing system

The network of global organisations funding crisis prevention, preparedness and response.

Financial Flows

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

Fragility

High exposure to risk combined with weak capacity to cope, often leading to crisis.