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

Risk profile

Underlying risks that an organisation or country is exposed to and the extent to which they are mitigated by pre-arranged finance.

Basis risk

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

Crisis financing

Funding designed to prevent, prepare for and respond to crises before and after they occur.

Adaptive social protection

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

Resilience

The ability to withstand shocks, adapt, recover and continue functioning over time.

Trigger

A predefined threshold that activates payments or actions within risk financing mechanisms.