Development bank
Financial institution that offers financing (typically in the form of loans and grants) and complementary technical assistance, tied to explicit development objectives (Centre for Disaster Protection).
Resilience
The ability to withstand shocks, adapt, recover and continue functioning over time.
Total crisis financing
Development funding focused mainly on crisis prevention, preparedness and response activities.
Other official flows (OOF)
Public funding supporting development that does not meet official aid definitions.
Basis risk
The gap between measured indicators and real losses causing payouts to differ from actual damage.
Crisis
A situation where severe needs overwhelm local and national capacity to respond effectively.
Catastrophe bond
A catastrophe bond (cat bond) is a risk-transfer financial instrument that allows governments or insurers to transfer disaster risk to capital market investors.
