Hedge funds disclosure of op risk exposures inadequate

The Madoff scandal and a new survey has thrown the spotlight back on the need for greater operational risk management at hedge funds

Operational risk management at hedge funds is under scrutiny following the Madoff scandal and regardless of efforts made by the industry to self-regulate on this issue, it has not been enough, at least according to a study carried out by French business school Edec. The study showed that hedge fund managers and investors felt liquidity risk was not sufficiently captured in hedge fund reporting and found there were disparities between hedge fund managers' perception of relevant information