A-P03 · PROCESS · scenariosGRA dossier · service level R0
GRADisaster Risk FinanceIn development
Sector scenarios

Published scenarios

Sector-level scenarios for Disaster Risk Finance are published here with their assumptions and limits. They describe aggregate exposures; they are not forecasts and not investment advice.

Publisher
The Global Risks Alliance
Field
Disaster and crisis, Sovereign and public finance, Development finance, Insurance and catastrophe
01In brief

The short answer.

Disaster Risk Finance sector scenarios are published, aggregated descriptions of how exposures in the disaster and crisis field could evolve under stated assumptions, read against frameworks such as Sendai Framework for Disaster Risk Reduction. They describe sector-level exposures with their limits; they are not forecasts, assess no individual firm and are not investment advice.

02Canvas

Scoping to review.

Canvas · scoping to reviewDesign, not a record
Published scenarios: disaster risk finance by layersThe risk profile is split into layers: frequent events from contingency budgets, less frequent from contingent credit, rare from insurance or risk transfer; pre-agreed plans and triggers make funds reach people fast. Design of the process, not a record of a run.

Fig.A programme from scoping to the owner's decision. Design, not a record.

03Spatial finance

A parametric trigger, read on the map.

How a storm crossing a trigger zone would set a payment. Real geography; synthetic storm and design terms.

A tropical cyclone passing Jamaica, read against two ways of triggering a payment.Synthetic storm and design terms, not a policy or a price.
04Status

Releases appear as they are reviewed.

Analysis runs in Nexus Foundry; reviewed releases are listed here.

05Scenario design

Running an event through the layers.

A scenario takes one event at a stated severity and runs it down the layers: what the budget contingency absorbs, when the reserve fund is exhausted, whether contingent credit is drawn, whether the parametric cover triggers and how much is left as residual. Values are illustrative. Anticipatory triggers on forecasts are shown separately because they pay before loss is known.

LayerQuestion in the scenario
RetentionWhich lines of spending are cut to fund response?
Contingent creditIs the drawdown condition met, and how fast?
TransferDoes the index cross the attachment point?
ResidualWho carries what remains?
06Key terms

Terms used on this page.

Each term as this page uses it. Where a standard-setting body defines the term, the wording follows that body.

TermDefinition
ScenarioA plausible description of how the future may unfold under stated assumptions, not a prediction.
Severe but plausible scenarioA disruption scenario extreme enough to test resilience yet realistic enough to occur.
Reverse stress testStarting from a failure outcome and identifying the scenarios that would cause it.
Investment adviceA personal recommendation on investments, a regulated activity in most jurisdictions.
07Sources

Where this page's references lead.

The bodies and documents this page is read against. Status and editions change; each link goes to the issuing body.

08Questions

Questions and answers.

Can I request a map or model?
Write to contact@globalriskalliance.com with what you need and why.
Disaster Risk Finance

Bring your expertise to this field.

The current service level is R0: information and enquiries. An enquiry receives a reference and names the next step; applications, payments, compute allocations and registrations open only when their team, terms and review capacity exist.

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