Glossary

Risk retention

When governments retain and finance disaster costs themselves.

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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

Vulnerability

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

Shock-responsive social protection

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

Adaptive social protection

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

Risk layering

Using different financial instruments for different disaster frequencies.

Basis risk

The gap between measured indicators and real losses causing payouts to differ from actual damage.

Disaster risk management

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