Fraud Risk presents a separate group of risks referring to the staff credibility. Again, like legal risk, this category is derived from the private nature of hedge funds as well as low transparency and document pitfalls. Often, it is included into the operational risk group as a part of people risk. However, in contrast with operational risk, which arises mostly from unpremeditated actions, fraud is always a crime of forethought. Therefore, it makes sense to define it as a stand-alone category of risks.