Risk retention
Glossary: Resilience, published by the Department for International Development in 2016, defines risk retention as a situation in which: ‘..one party retains financial responsibility for loss in the event of a shock. Governments typically hold risk through government reserves, contingency funds, contingent credits and loans.’
This is as opposed to risk transfer, where: '...the burden for financial loss or responsibility is transferred to another party e.g. international donors (aid) or market-based mechanisms including insurance and securities such as catastrophe bonds.'
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