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 moreRisk retention
When governments retain and finance disaster costs themselves.
Crisis financing
Funding designed to prevent, prepare for and respond to crises before and after they occur.
Crisis
A situation where severe needs overwhelm local and national capacity to respond effectively.
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.
Hazard
A natural or human process that can cause injury, damage or disruption.
Disaster risk management
Policies and actions to reduce disaster risks, manage impacts and strengthen resilience.
