In the wake of the Bear Stearns and Lehman difficulties, many hedge fund managers have migrated toward a “multi-prime” environment, in which more than one prime broker is utilized by the fund.  On closer examination, a number of hedge funds have failed in their dual objectives of setting up a true multi-prime relationship and reducing their overall operational risk.  Indeed, quite a few hedge fund firms have increased their operational risk without even realizing it.  In a guest article, Holly H. Miller, a Partner at Stone House Consulting, LLC, examines steps that hedge fund managers can take to achieve their objectives and enhance their operational risk profile.