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).
Shock-responsive social protection
Social protection systems adapted to scale quickly when large shocks affect many people.
Vulnerability
Conditions that increase how severely people or communities are affected by hazards.
Fragility
High exposure to risk combined with weak capacity to cope, often leading to crisis.
International crisis financing system
The network of global organisations funding crisis prevention, preparedness and response.
Parametric insurance
Insurance that pays when an agreed indicator reaches a set level, not actual losses.
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.
