Index
In risk finance, an index is an indicator or measure that is chosen to be a good proxy for a type of shock, and used to determine payouts. For example, tropical cyclone categories used as an index for property damage or area average yield as a measure of lost agricultural production. Modelled estimates of damage costs are also used as indices (Centre for Disaster Protection).
Risk retention
When governments retain and finance disaster costs themselves.
Social protection
Policies and programmes designed to reduce and prevent poverty and vulnerability throughout the life cycle.
Other official flows (OOF)
Public funding supporting development that does not meet official aid definitions.
Accountability
Being responsible for decisions and resources, listening to affected people, and accepting consequences for actions taken.
Crisis
A situation where severe needs overwhelm local and national capacity to respond effectively.
Pre-arranged financing
Financing approved before crises that is released automatically when agreed triggers are met.
