In January 2008, a global financial institution reported a $7 billion loss that occurred when unauthorized trading positions were closed. This substantial loss, among others, is yet another reminder that there are severe penalties if the largest risk exposures are not identified in a timely manner, properly monitored and managed effectively. This issue of The Bulletin suggests approaches for improving transparency into an entity’s most significant risk exposures, with the objective of minimizing the risk of unwanted surprises.