Regulators and bankers do not always have the same focus when discussing certain topics. Until recent years, risk was one of these topics. In general banks, with most of their portfolios invested in assets issued in the more stable economies, were more interested in day-today risk management while regulators were more interested in scenarios of systemic risk. Banks also tended to focus less on the impact of macroeconomic variables on potential losses. The market upheavals of 1998 have changed banks’ views on these issues, as reflected in this paper, and have brought a new emphasis on systemic risk and on the impact of the correlated nature of market and credit risks on the amounts exposed to counterparties.