The last 20 years have seen some major business failures. There have been spectacular corporate collapses; major ventures within profitable groups have come to grief; maverick traders have wrought havoc; and executive performance has been challenged. Tax has played a part in some of these events. The reaction has been predictable: increased regulation, increased disclosure, increased criticism and increased informal pressure. Business must react to this, not because of compulsion, but because it makes business sense. One business reaction must be to pay increased attention to "tax risk management". This article examines this concept and suggests a useful methodology for applying tax risk management.