Risk is top of mind in the hedge fund business today--understandable, after a year of volatility and the collapse of several financial institutions, big and small--and many firms have sought to ease their fears with the appointment of a chief risk officer (CRO). However, CROs need risk tools and those systems can be pricey.
Hedge funds often turn to their providers, particularly prime brokerages, for ancillary services. A few years ago, when funds were multiplying at a rapid clip, nearly every prime broker touted its capital introduction prowess, for example. Capital introduction may be less important in an environment where many firms are in survival mode, but risk management has become all too relevant.
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