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).
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.
Social protection
Policies and programmes designed to reduce and prevent poverty and vulnerability throughout the life cycle.
Financial Flows
Financial flows refer to the movement of funds for disaster risk reduction (DRR) and response, covering planned and unplanned sources.
Preparedness
Skills, systems and resources developed to respond effectively to likely future crises.
Adaptive social protection
Social protection systems that adjust to shocks, helping vulnerable people prepare, cope and recover over time.
Basis risk
The gap between measured indicators and real losses causing payouts to differ from actual damage.
