Resilience measures

Name Definition
Reserve funds Building a catastrophic reserve fund is one of the measures assisting risk management as it will enable claims to be provided in years with unusually costly flood disasters. Many countries maintain a catastrophe reserve fund financed from tax revenues and invested in readily liquid assets. This financing option also spreads ...
Budget diversion Governments of emerging-economy countries raise money for disaster response and rehabilitation by diverting funds from other budgeted items such as ongoing public infrastructure projects. (Kunreuther H. and Linnerooth-Bayer J., 1999).
Government debt instrument A common way for emerging-economy governments to raise funds after a disaster is to borrow from their central bank reserves or to issue government bonds (Kunreuther H. and Linnerooth-Bayer J., 1999, p.14).
International loan Emerging-economy governments have the opportunity to borrow at low interest rates from international lending organizations aiming at pre-disaster planning or at recovery activities before or after the occurrence of extreme event respectively. This is a major financing source in the developing world. (Kunreuther H. and Linnerooth-Bayer J., 1999, p. 15)