Residual risk
The disaster risk that remains even after effective measures to reduce it, which must be managed through preparedness, response and financing.
Governments agree that reducing disaster risk and paying for the risk that remains should go hand in hand. A review of policies in 13 countries finds they are still planned, costed and funded apart.
Read moreDisaster risk management
Policies and actions to reduce disaster risks, manage impacts and strengthen resilience.
Fragility
High exposure to risk combined with weak capacity to cope, often leading to crisis.
Risk transfer
When disaster risk is shifted to insurers or capital markets.
Index
A measurable indicator used to estimate losses and trigger financial payouts.
Parametric insurance
Insurance that pays when an agreed indicator reaches a set level, not actual losses.
Disaster risk finance diagnostic
An analytical assessment of a country’s disaster risk profile.
