Glossary

Prevention

Activities and measures to avoid existing and new crisis risks, including mitigation activities that lessen or minimise the adverse impacts of a hazardous event without fully avoiding the impacts (the Centre, based on UNISDR 2016).

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other key terms

Cost multiple

The cost multiple measures the average amount a government pays to receive USD 1 of payout from a financing instrument over its lifetime.

Sovereign insurance

Sovereign insurance is insurance coverage purchased by a national government to protect its budget against the financial impacts of disasters.

Disaster risk management

Policies and actions to reduce disaster risks, manage impacts and strengthen resilience.

Financial Flows

Financial flows refer to the movement of funds for disaster risk reduction (DRR) and response, covering planned and unplanned sources.

Early warning system

Systems that monitor hazards and share information early, so people can act in time.

Index

A measurable indicator used to estimate losses and trigger financial payouts.