Hedge fund managers concerns are focused on real and familiar pain of counterparty and volatility risk, not regulation. As it turns out, regulation is not the biggest fear for hedge fund managers. Volatility and counterparty risk are the biggest concerns according to the preliminary results of the Risk Governance Survey performed by PRIMA and Capital Market Risk Advisors. The survey, which included 140 participants from 27 countries (the majority of which were US-based) focused on what managers biggest concerns were for the back half of 2009. The survey showed that across the financial industry, regulatory risk is very much a major concern. However, a smaller focus on hedge fund and fund of funds respondents shows that the greater concern lies with the all too real and familiar pains of 2008, which were counterparty risk and volatility.