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.
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A predefined threshold that activates payments or actions within risk financing mechanisms.
Crisis financing
Funding designed to prevent, prepare for and respond to crises before and after they occur.
Preparedness
Skills, systems and resources developed to respond effectively to likely future crises.
Crisis risk
The likelihood of harm or loss from crises shaped by hazards, exposure, vulnerability and capacity.
Accountability
Being responsible for decisions and resources, listening to affected people, and accepting consequences for actions taken.
Risk profile
Underlying risks that an organisation or country is exposed to and the extent to which they are mitigated by pre-arranged finance.
