The fragile and conflict-affected situations (FCAS) and small island developing states (SIDS) approach represents a new way of doing business for the Asian Development Bank (ADB) in its most vulnerable developing member countries. FCAS and SIDS face unique development challenges such as a greater need for governance and institutional capacity building, geographic isolation, small populations, narrow asset bases, and armed conflict. The FCAS and SIDS approach-or FSA-introduces flexible processes and procedures that will allow ADB to tailor interventions to the specific challenges of these countries, with the goal of improving project results, and ultimately improving livelihoods.