Risk layering
Using different financial instruments for different disaster frequencies.
This report offers an in-depth assessment of pre-arranged financing tools using seven key criteria for ensuring pre-arranged financing reduces the human and financial costs of disasters
Read moreCost multiple
The cost multiple measures the average amount a government pays to receive USD 1 of payout from a financing instrument over its lifetime.
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.
Resilience
The ability to withstand shocks, adapt, recover and continue functioning over time.
Disaster
A severe event causing widespread harm that exceeds a community’s ability to cope alone.
Covariate shocks
Shocks affecting many households at once where losses are shared across the same community.
Preparedness
Skills, systems and resources developed to respond effectively to likely future crises.
