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From Komfie Manalo, Opalesque Asia:

A big majority of investment firms have recently done a risk assessment as the new breed of investors have different risk tolerances from traditional hedge fund managers, according to a 2010 survey on operational risk by North American management consulting firm Beacon Consulting Group and international business solutions firm Advent Software.

In a study titled: “Managing Risk in a New World: Best Practices for Hedge Funds,” Advent and Beacon found confirmation that hedge funds managers are actively seeking to avoid a repeat of the market upheavals of 2008 and 2009. Indeed, 71% of the respondents who took part in the survey reported having planned, initiated or completed a risk assessment over the last six months.

This move was aimed at winning back investors confidence.

At the same time, nearly 80% of respondents reported a marked increase in operational due diligence requests over the previous year. Intelligent investors, reeling from experience, now see the need for more efficient and comprehensive risk management and reporting policies to meet the more stringent due diligence requirements. Forward-thinking managers also recognize that an advanced risk management infrastructure can be an important differentiator, providing them with a competitive advantage in attracting and retaining assets.

Historical......................

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