In the last few years, hedge fund managers, investors and regulators have identified a growing roster of risks facing hedge fund investments and operations.  See, “SEC Provides Recommendations for Establishing an Effective Risk Management Program for Hedge Fund Managers at Its Compliance Outreach Program Seminar,” Hedge Fund Law Report, Vol. 5, No. 4 (Apr. 5, 2012).  As a consequence, investors and regulators are increasingly demanding effective, appropriately tailored risk management systems, and managers are making an ongoing effort to divine best practices.  Recognizing and reflecting this trend, BNY Mellon issued a research study in August 2012 that provides a roadmap of the state of risk management in the hedge fund industry, risk management trends and best practices.  This article summarizes the key points from the study, with particular emphasis on tools and practices hedge fund managers can implement to identify, monitor, mitigate and report on risk.  See also “Ernst & Young Survey Shows Risk Managers Possess Tremendous Influence and Face Substantial Challenges in the Asset Management Industry,” Hedge Fund Law Report, Vol. 5, No. 23 (Jun. 8, 2012).