Risk retention
When governments retain and finance disaster costs themselves.
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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A predefined threshold that activates payments or actions within risk financing mechanisms.
International development financing
Public funding flows supporting development objectives in lower income countries.
Covariate shocks
Shocks affecting many households at once where losses are shared across the same community.
Residual risk
The disaster risk that remains in unmanaged form, even when effective disaster risk reduction measures are in place, and for which emergency response and recovery capacities must be maintained (UNDRR 2026).
Fragility
High exposure to risk combined with weak capacity to cope, often leading to crisis.
Risk layering
Using different financial instruments for different disaster frequencies.
