AIMA Guide to Sound Practices for Operational Risk Management
This Guide, published in February 2016, sets out principles that small- to medium-sized hedge fund managers should consider when developing an Operational Risk Management (‘ORM’) program as part of their overall compliance and operations. With the increased scrutiny of hedge fund managers by institutional investors, regulators and the media, particularly post-2008, the focus on a hedge fund manager’s ORM processes and procedures has multiplied. Following this trend, institutional investors and ORM specialists routinely recommend that emerging managers adopt “sound practices”. AIMA hopes that this Guide will provide additional insights for its manager members looking to improve their operations, and understand what next steps could be considered as an investment manager’s AUM grows.