Intellectually gifted children from diverse ethnic and cultural backgrounds as well as varying levels of risk were evaluated to determine the effect of risk on gifted children when intelligence level has been controlled. Each of 7,323 children from six ethnic backgrounds had achieved a standardized intelligence test score (Wechsler Intelligence Scale for Children - Revised [WISC-R] or Raven's Standard Progressive Matrices) at least two standard deviations above the mean. Areas of risk evaluated in a case study approach included cultural, economic, emotional, environmental, health and language factors. Although each child in the sample demonstrated high intellectual potential, differences were found only between groups defined by level of risk. Higher degrees of risk were found for disadvantaged students on several measures of aptitude, achievement, and verbal intelligence. Implications and limitations of these findings for assessment of giftedness, identification of potential gifted underachievers, and development of gifted curricula are discussed. (PB)