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).
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.
Hazard
A natural or human process that can cause injury, damage or disruption.
Ex ante
Actions, decisions or financial arrangements made before a disaster or crisis occurs.
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.
Crisis
A situation where severe needs overwhelm local and national capacity to respond effectively.
