The crystallization of fiscal risks has been the main driver of the deterioration in public finances over the past fifteen years. Further, during the global financial crisis and COVID pandemic, governments turned to fiscal risk expanding policies like guarantees and loans to respond to these unexpected events; leaving a lasting impact on government fiscal positions. Both of these factors have increased the focus on understanding, analyzing, and managing fiscal risks by governments and international financial institutions. This chapter examines how these risks played out, the key sources and nature of fiscal risks, and what they mean for government budgets and fiscal policy. It outlines the key developments, including stronger standards and guidance; new frameworks for assessing risks and the broader public sector balance sheet; and new tools for managing fiscal risks and making future policy. It finishes by identifying climate change and geopolitical risks as areas that require more attention in the future.