Glossary

Trigger

A trigger is a predefined threshold of an index underlying a risk finance mechanism which, if exceeded, prompts a payout. A trigger may also leave an element of discretion to a designated party about whether or not to launch a response activity (Centre for Disaster Protection).

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The clearest picture yet of what countries actually want from pre-arranged finance and what institutional frictions slow delivery.

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Pre-arranged financing is expanding fast, but the voices of the countries it is meant to protect are too rarely heard. This report gives the clearest picture yet of what countries actually want.

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The first cross-country evidence on what governments actually want from pre-arranged financing, drawing on evidence from nearly 250 government officials and national stakeholders.

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A practical note on Debt Pause Clauses, the first of a series of documents designed to help governments and practitioners understand and compare financial instruments.

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This policy brief examines the first real-world use of debt pause clauses - contractual mechanisms that allow sovereign borrowers to temporarily defer debt payments in the wake of a disaster.

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This report offers lessons on the process of developing the trigger for the Malawi AA Framework and captures lessons on how AA pilots are being designed and implemented in real time.

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Alongside the Airbel Research and Innovation Lab we provide key lessons for how effective crisis response can be financed and triggered

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Practical guidance on contingency planning a before a disaster strikes to support a faster, more coordinated, and ultimately, more effective response.

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This publication explains the importance of thinking strategically and sets out four principles for taking a strategic approach, with practical advice and resources.

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This paper summarises the different shocks created by the global Covid-19 crisis.

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This paper proposes an innovative approach to financing contingent liabilities using IDA.

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other key terms

Ex ante

Actions, decisions or financial arrangements made before a disaster or crisis occurs.

Sovereign insurance

Sovereign insurance is insurance coverage purchased by a national government to protect its budget against the financial impacts of disasters.

Pre-arranged financing

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

Total crisis financing

Development funding focused mainly on crisis prevention, preparedness and response activities.

Fragility

High exposure to risk combined with weak capacity to cope, often leading to crisis.

Disaster risk finance diagnostic

An analytical assessment of a country’s disaster risk profile.