Glossary

Risk transfer

When disaster risk is shifted to insurers or capital markets.

Learn more

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

Read more
other key terms

Disaster risk management

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

Contingent liabilities

Possible financial obligations that only become real if specific future events occur.

International crisis financing system

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

Crisis protection gap

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

Attachment point

The loss level above which a reinsurer begins paying under a reinsurance agreement.

Financial Flows

Financial flows refer to the movement of funds for disaster risk reduction (DRR) and response, covering planned and unplanned sources.