Tax Risk Management requires seven steps to ensure complete compliance by taxpayers, in an international environment where tax authorities are becoming better equipped and organized in closing tax gaps. Part of the process of tax authorities is the formation of Large Tax Units that expect to classify taxpayers into two categories: co-operative taxpayers, and those that are not. A proactive tax risk management process ensures that taxpayers fall into the former category. This paper examines the major steps that should be taken to achieve this.