Falling loan default rates, improving margins and a slowly recovering economy have ensured that even some hard-hit retail banks have returned to profitability. While such positive news is encouraging, the markets are ever mindful that economic recovery remains fragile. What factors will likely dent profitability in the near term? Could heavily indebted European countries pose serious problems down the line? This supplement to the main report (Rebuilding Trust: Next Steps for Risk Management in Financial Services) examines the steps retail banks are taking to reinforce their risk management capabilities in response to the global financial crisis.