After two impressively peaceful decades, there are signs of a dangerous degree of complacency in Kiribati's view of its domestic and external affairs. Forms of cultural and political resistance to change have thus been encouraged, and these are handicapping the nation's response to development risks. Eight leading sources of development risk confronting Kiribati are identified, and these require understanding and appropriate responses in the form of well-formulated national development strategies. Based on a thorough assessment of risks, priorities, and options by sector in the main report, 16 policy actions are recommended as keys to the full range of responses that need to be formulated to cope with development risk.