Fragility
The combination of exposure to risk and insufficient coping capacity of the state, system and/or communities to manage, absorb or mitigate those risks. Fragility can lead to negative outcomes including violence, the breakdown of institutions, displacement, humanitarian crises or other emergencies (OECD 2016).
This insight paper aims to improve the reader’s understanding of two initiatives aiming to address aspects of climate challenge.
Read moreRisk retention
When governments retain and finance disaster costs themselves.
Climate resilient debt clause or 'debt pause clause'
A provision in sovereign debt contracts that enables the borrower to temporarily stop repaying debt service for a pre-agreed period when a predefined event occurs.
Crisis financing
Funding designed to prevent, prepare for and respond to crises before and after they occur.
Social protection
Policies and programmes designed to reduce and prevent poverty and vulnerability throughout the life cycle.
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.
Risk layering
Using different financial instruments for different disaster frequencies.
