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

International development financing

Public funding flows supporting development objectives in lower income countries.

Disaster risk management

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

Social protection

Policies and programmes designed to reduce and prevent poverty and vulnerability throughout the life cycle.

Covariate shocks

Shocks affecting many households at once where losses are shared across the same community.

International crisis financing system

The network of global organisations funding crisis prevention, preparedness and response.

Crisis

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