More than ever before, institutional investors and their consultants are probing investment management firms' risk management policies and procedures. Beyond market, credit and liquidity risk, their concern extends to investment managers' back- and middle-office functions. For example, investors and consultants are asking: Is the firm managed and staffed by qualified people? Are workflows properly documented and consistently followed? Are employees cross-trained to handle one another's jobs? Does the firm keep track of collateral in the hands of prime brokers? How does the firm plan ahead for...