Glossary

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.

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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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other key terms

Anticipatory Action

Actions taken before a crisis hits to prevent or reduce potential disaster impacts prior to a shock or before acute impacts are felt.

Disaster risk financing

Financial arrangements made in advance to pay for disaster prevention, response and recovery.

Social protection

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

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.

Development insurer

An insurer supporting development goals through insurance products and technical assistance.

Shock-responsive social protection

Social protection systems adapted to scale quickly when large shocks affect many people.