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Disaster Management QUESTION #6516
Question 1
Which financial mechanism would provide the fastest and most predictable post-disaster liquidity for immediate relief operations?
  • Traditional budget reallocation
  • Parametric insurance with predefined triggers✔️
  • International donor appeals
  • Contingency loans from development banks
Correct Answer Explanation
Section 9.2 describes parametric insurance as triggering payouts based on predefined thresholds (e.g., rainfall levels) rather than assessed damages. This provides rapid, predictable financial support without lengthy claim assessment processes.