Glossary
Risk transfer
When disaster risk is shifted to insurers or capital markets.
other key terms
Financial Flows
Financial flows refer to the movement of funds for disaster risk reduction (DRR) and response, covering planned and unplanned sources.
Resilience
The ability to withstand shocks, adapt, recover and continue functioning over time.
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.
Crisis
A situation where severe needs overwhelm local and national capacity to respond effectively.
Ex ante
Actions, decisions or financial arrangements made before a disaster or crisis occurs.
Index
A measurable indicator used to estimate losses and trigger financial payouts.
