re : to discuss when we get a moment
- - - - - - - - - - - - - - - - - - - - - - forwarded by mike jordan / lon / ect on 22 / 10 / 2000 15 : 41
- - - - - - - - - - - - - - - - - - - - - - - - - - -
fernley dyson
20 / 10 / 2000 11 : 37
to : mike jordan / lon / ect @ ect
cc :
subject : re :
excellent - we should give it as much profile as possible and ensure that our
' agency ' offices read it - it would be good to get it out in advance of
issuing the revised authorised traders list . will you be refer to this at
your offsite next week ?
thanks
mike jordan
19 / 10 / 2000 19 : 30
to : john sherriff / lon / ect @ ect
cc : fernley dyson / lon / ect @ ect
subject :
john
after much debate - jackie and i agreed on the following wording to cover the
full text - are you comfortable with wording ? if so , would you like it as a
separate globalflash or part of the next weekly globalflash ?
mike
enron must complement its origination and trading capabilities with the
ability to control and report on all transactions within its portfolios
efficiently and effectively . summarised below are the highlights of our
fundamental risk management standards which we must comply with to meet these
objectives .
these standards are a key part of the core discipline for all trading staff -
both commercial and commercial support - and you should review them
carefully . if you would like to raise any specific questions , please follow
up directly with mike jordan on extension 34703 .
john sherriff
risk management controls in a trading environment
to manage operational risk in a trading environment enron has designed and
implemented operational control standards . these standards , which are common
for all businesses , aim to prevent errors and inaccuracies and ensure the
timely recording of trading transactions .
what standards does enron have in place ?
enron has six fundamental standards for risk management that cover :
- recording transactions
- reporting daily profit & loss and risk positions
- confirmation and execution of transactions
- settlements with counterparties
- risk management and settlement system information reflected in the general
ledger
- implementation of business and control infrastructure
what else is important when controls are implemented ?
implementing segregation of duties within the trading environment ensures
that no individual has control over all phases of a transaction . this
allows incompatible functional responsibilities to be kept separate ,
specifically :
- authorization and execution of transactions
- recording and performance of transactions
- monitoring and review of trading activities
why do we need to standardised controls ?
to assimilate new or build existing commodity businesses enron needs to be
nimble and responsive . a robust and stable control process can be duplicated
or flexed quickly and confidently , providing scalability and the capability
to assess and manage operational risk .
how do we measure successful control ?
by identifying and reporting metrics for all standards we build an
understanding of compliance across all businesses and seek continual
improvement . this compliments the qualitative cross - checking process
facilitated by communication between commercial , risk management operations
and rac .
the control measurement process will be part of a global initiative across
all commodities and locations .
where can you find details of our fundamental standards ?
mike jordan  ) head of risk management operations for enron europe
fernley dyson  ) chief accounting officer for enron europe
- original one pager
re :
to discuss when we get a moment
- - - - - - - - - - - - - - - - - - - - - - forwarded by mike jordan / lon / ect on 22 / 10 / 2000 15 : 41
- - - - - - - - - - - - - - - - - - - - - - - - - - -
fernley dyson
20 / 10 / 2000 11 : 37
to : mike jordan / lon / ect @ ect
cc :
subject : re :
excellent - we should give it as much profile as possible and ensure that our
' agency ' offices read it - it would be good to get it out in advance of
issuing the revised authorised traders list . will you be refer to this at
your offsite next week ?
thanks
mike jordan
19 / 10 / 2000 19 : 30
to : john sherriff / lon / ect @ ect
cc : fernley dyson / lon / ect @ ect
subject :
john
after much debate - jackie and i agreed on the following wording to cover the
full text - are you comfortable with wording ? if so , would you like it as a
separate globalflash or part of the next weekly globalflash ?
mike
enron must complement its origination and trading capabilities with the
ability to control and report on all transactions within its portfolios
efficiently and effectively . summarised below are the highlights of our
fundamental risk management standards which we must comply with to meet these
objectives .
these standards are a key part of the core discipline for all trading staff -
both commercial and commercial support - and you should review them
carefully . if you would like to raise any specific questions , please follow
up directly with mike jordan on extension 34703 .
john sherriff
risk management controls in a trading environment
to manage operational risk in a trading environment enron has designed and
implemented operational control standards . these standards , which are common
for all businesses , aim to prevent errors and inaccuracies and ensure the
timely recording of trading transactions .
what standards does enron have in place ?
enron has six fundamental standards for risk management that cover :
- recording transactions
- reporting daily profit & loss and risk positions
- confirmation and execution of transactions
- settlements with counterparties
- risk management and settlement system information reflected in the general
ledger
- implementation of business and control infrastructure
what else is important when controls are implemented ?
implementing segregation of duties within the trading environment ensures
that no individual has control over all phases of a transaction . this
allows incompatible functional responsibilities to be kept separate ,
specifically :
- authorization and execution of transactions
- recording and performance of transactions
- monitoring and review of trading activities
why do we need to standardised controls ?
to assimilate new or build existing commodity businesses enron needs to be
nimble and responsive . a robust and stable control process can be duplicated
or flexed quickly and confidently , providing scalability and the capability
to assess and manage operational risk .
how do we measure successful control ?
by identifying and reporting metrics for all standards we build an
understanding of compliance across all businesses and seek continual
improvement . this compliments the qualitative cross - checking process
facilitated by communication between commercial , risk management operations
and rac .
the control measurement process will be part of a global initiative across
all commodities and locations .
where can you find details of our fundamental standards ?
mike jordan  ) head of risk management operations for enron europe
fernley dyson  ) chief accounting officer for enron europe
- original one pager