Glossary

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).

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This insight paper aims to improve the reader’s understanding of two initiatives aiming to address aspects of climate challenge.

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other key terms

Hazard

A natural or human process that can cause injury, damage or disruption.

Risk transfer

When disaster risk is shifted to insurers or capital markets.

Attachment point

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

Pre-arranged financing

Financing approved before crises that is released automatically when agreed triggers are met.

Ex ante

Actions, decisions or financial arrangements made before a disaster or crisis occurs.

Crisis

A situation where severe needs overwhelm local and national capacity to respond effectively.