Disaster events have lasting impacts on people, communities, and socioeconomic development. Countries in the Pacific are among the most exposed, globally, to natural disasters, including floods, droughts, cyclones, and earthquakes. The effects of climate change threaten to increase the severity and frequency of hazard events in the Pacific region, emphasizing the need for Pacific island countries to protect themselves against corresponding social and economic consequences. Given the large role of the public sector in most Pacific economies, reducing the financial exposure of governments to disaster risk is essential for safeguarding sustainable development. Preparing for risks enables countries to minimize damages and immediate impacts on people and communities. ensuring financial preparedness allows governments to quickly respond to disasters, and to minimize secondary impacts on the economy. As such, disaster risk reduction is essential both for attenuating immediate impacts on people and assets, and for supporting communities to swiftly recover. The Asian Development Bank is working with its Pacific developing member countries to increase resilience across the region. Some of the key measures for doing so include climate-proofing assets and investments; raising awareness; and building the capacity of stakeholders to plan for, manage, and respond to disasters. lack of financial preparedness to respond to disasters remains a central constraint for governments across the Pacific. Building a robust understanding of available financial tools and resources is essential for planning for and responding to disaster events. This publication seeks to support governments in the Pacific in planning policies and allocating resources to reduce the economic impacts of disaster events. It describes the potential direct and secondary effects of natural disasters on Pacific developing member countries, and explains how climate change may affect risk profiles. It also provides an overview of existing resources that stakeholders in the Pacific can use to assess risk and plan for disaster events. The Tool kit for Financial resilience (pages 16–21) provides an overview of key instruments that policy makers can use to transfer risk and reduce the economic and fiscal impacts of disasters.