Glossary

Financial Flows

Financial flows refer to the movement of funds for disaster risk reduction (DRR) and response, covering planned and unplanned sources.

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The report contributes to a broader study to consider the opportunities, potential risks, and benefits of channelling disaster risk financing instruments through national social protection systems.

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The report contributes to a broader study to consider the opportunities, potential risks, and benefits of channelling disaster risk financing instruments through national social protection systems.

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This Disaster Risk Diagnostic supports The Gambia’s efforts to strengthen disaster risk financing and recommends ways to build a clearer risk profile.

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This paper aims to identify available data and methodologies, explore whether these could support a global database to track disaster-related financial flows.

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This policy brief draws on the findings of five Discussion Papers in the Centre’s IDA19 Series.

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Lessons for IDA from the UK Government’s approach to explicit contingent liabilities.

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This paper charts the evolution of the World Bank’s approach to crisis risk financing.

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This paper proposes an innovative approach to financing contingent liabilities using IDA.

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other key terms

Attachment point

The loss level above which a reinsurer begins paying under a reinsurance agreement.

Disaster risk management

Policies and actions to reduce disaster risks, manage impacts and strengthen resilience.

Vulnerability

Conditions that increase how severely people or communities are affected by hazards.

Contingent loan (or credit) and grants

A pre approved loan or grant released automatically when agreed crisis conditions or triggers are met.

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.

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.