Risk profile
Underlying risks that an organisation or country is exposed to, the amount of financial protection needed and that is expected to be covered by pre-arranged financing instrument(s), and where there are funding gaps.
This guidance note has been developed to help the increasing number of countries and organisations that are considering or using pre-arranged financing instruments.
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A measurable indicator used to estimate losses and trigger financial payouts.
Disaster
A severe event causing widespread harm that exceeds a community’s ability to cope alone.
Attachment point
The loss level above which a reinsurer begins paying under a reinsurance agreement.
Contingent liabilities
Possible financial obligations that only become real if specific future events occur.
Risk layering
Using different financial instruments for different disaster frequencies.
Hazard
A natural or human process that can cause injury, damage or disruption.
