Risk management

 

Any solution that invovles the transfer of risks between two or more parties, e.g. a guarantee. The financing solutions that encompass a risk management element are listed below.

 

Disaster risk insurance

Insurance schemes covering—against a premium—the costs incurred by the insured entity from extreme weather and natural disasters.

Public guarantees

Guarantees can mobilize and leverage commercial financing by mitigating and/or protecting risks, notably commercial default or political risks.

Social and development impact bonds (Results-Based Financing)

A public-private partnership that allows private (impact) investors to upfront capital for public projects that deliver social and environmental outcomes in exchange for a financial interest.

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