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).
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.
Crisis
A situation where severe needs overwhelm local and national capacity to respond effectively.
Trigger
A predefined threshold that activates payments or actions within risk financing mechanisms.
Sovereign insurance
Sovereign insurance is insurance coverage purchased by a national government to protect its budget against the financial impacts of disasters.
Crisis risk
The likelihood of harm or loss from crises shaped by hazards, exposure, vulnerability and capacity.
Social protection
Policies and programmes designed to reduce and prevent poverty and vulnerability throughout the life cycle.
