Glossary

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other key terms

International crisis financing system

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

Pre-arranged financing

Financing approved before crises that is released automatically when agreed triggers are met.

Parametric insurance

Insurance that pays when an agreed indicator reaches a set level, not actual losses.

Basis risk

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

Resilience

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

Early warning system

Systems that monitor hazards and share information early, so people can act in time.