Recent public disclosures by a major bank that it had incurred around $2 billion in trading losses serves as a wake-up call on what can happen when trading financial derivatives goes awry. Because this situation is neither new nor limited to the financial services industry, boards and senior executives may want to evaluate their organization’s use of financial instruments that can have explosive consequences if not used properly or as authorized. This issue of Board Perspectives: Risk Oversight focuses on such matters as “tone at the top” and effective internal control as well as some important questions for boards and senior executives to consider.