Covariate shocks
Covariate shocks are those which affect many people in the same community at once; the experience of one household is highly covariate with that of other households in the community (Jalan and Ravallion 1999).
Financial Flows
Financial flows refer to the movement of funds for disaster risk reduction (DRR) and response, covering planned and unplanned sources.
Disaster risk management
Policies and actions to reduce disaster risks, manage impacts and strengthen resilience.
Trigger
A predefined threshold that activates payments or actions within risk financing mechanisms.
Resilience
The ability to withstand shocks, adapt, recover and continue functioning over time.
Preparedness
Skills, systems and resources developed to respond effectively to likely future crises.
Index
A measurable indicator used to estimate losses and trigger financial payouts.
