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

Development bank

A public financial institution providing loans, grants and expertise to support development goals.

Parametric insurance

Insurance that pays when an agreed indicator reaches a set level, not actual losses.

Crisis protection gap

The difference between expected crisis costs and funding already arranged to cover them.

International crisis financing system

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

Early warning system

Systems that monitor hazards and share information early, so people can act in time.

Disaster risk finance diagnostic

An analytical assessment of a country’s disaster risk profile.