After the last financial crisis a number of large investors in Cayman funds got together to demand changes in director regulation from CIMA. One of them was Greg Robbins of Mesirow. He was designated by a group of unhappy investors in Cayman hedge funds to write an open letter to CIMA.

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Given that every fund is different it follows that the risks they face are not the same either. But they all have some sort of risk and it is not clear that every board is on top of what these might be. Also, funds do need good risk management if they want to be sold in today’s heavily regulated environment. And good risk oversight helps attract investors as well as keep regulators at bay.

Following are some suggestions for what boards should do to improve their risk oversight:

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