Glossary

Risk layering

Using different financial instruments for different disaster frequencies.

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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

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other key terms

Crisis

A situation where severe needs overwhelm local and national capacity to respond effectively.

Adaptive social protection

Social protection systems that adjust to shocks, helping vulnerable people prepare, cope and recover over time.

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.

Preparedness

Skills, systems and resources developed to respond effectively to likely future crises.

Vulnerability

Conditions that increase how severely people or communities are affected by hazards.

Crisis financing

Funding designed to prevent, prepare for and respond to crises before and after they occur.