Hedge fund investors and regulators are intensely focused on fund managers’ risk management functions.  Investors conduct extensive due diligence to ascertain how managers are addressing various investment, operational and compliance risks confronting the managers’ businesses.  Regulators are mandating that fund managers provide voluminous information about the risks their funds face through disclosures such as Form PF.  See “Form PF: Operational Challenges and Strategic, Regulatory and Investor-Related Implications for Hedge Fund Managers,” Hedge Fund Law Report, Vol. 5, No. 4 (Jan. 26, 2012).  As such, a firm grasp of risk management is imperative for hedge fund managers seeking institutional investment and credibility with regulators.  In that vein, in May 2012, Ernst & Young released its 2012 survey report entitled, “A growing sphere of influence – survey of U.S. asset management risk managers” (Report).  The Report provides market color with relevance to hedge fund managers on how the broader asset management industry is approaching risk management.  The Report describes risk managers’ views on their level of influence within their firms; their mandates; their biggest challenges; the top risks they face; their risk monitoring responsibilities; the frequency of risk reporting they provide; future risk management initiatives; their awareness of budgets; use of key risk metrics; and hybrid risk management organizations.  This article summarizes key findings contained in the Report.  See also “What Is a Chief Risk Officer, and Should Hedge Fund Managers Have One?,” Hedge Fund Law Report, Vol. 2, No. 31 (Aug. 5, 2009).