Trigger for early action: forecast based financing

This publication describes the experience of the German Red Cross in Bangladesh with the development and application of danger levels, thresholds and triggers in the context of Forecast based Financing (FbF). It highlights the advantages of FbF for disaster risk management practitioners and recommends the following four-step mechanism to trigger action:

• Review and analyse available information;
• Define the danger level;
• Assess the accuracy of forecasts;
• Preparation of the menu of trigger and trigger selection.

This report demonstrates how FbF can be implemented and used to reduce damage and losses, and how it is more cost-effective than spending on response and rehabilitation.