Glossary
Hazard
A process, phenomenon or human activity that may cause loss of life, injury or other health impacts, property damage, social and economic disruption or environmental degradation (UNISDR 2016).
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other key terms
Risk transfer
When disaster risk is shifted to insurers or capital markets.
Risk retention
When governments retain and finance disaster costs themselves.
Risk layering
Using different financial instruments for different disaster frequencies.
Fragility
High exposure to risk combined with weak capacity to cope, often leading to crisis.
Total crisis financing
Development funding focused mainly on crisis prevention, preparedness and response activities.
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.
