Limit Violation Notification

IN THE SPIRIT OF LET US MAKE IT BETTER - NOT IN TED IS CHUCKING BLAME AROUND,
PLEASE CONSIDER THE FOLLOWING ISSUE:

At the Audit Comittee Meeting, Jeff made the comment that the number of and
timing of the limit notifications caused them to be meaningless. Now part of
that was an attempt by him to diffuse the number of notifications represented
graphically, but I think that there is an element of truth, particularly of
late. therefore, I propose that we work toward making that timing faster and
the impact more meaningful.

I think the following might help:
1) Cassandra will be our point person, therefore it will be faster than
waiting for the slower, more distracted and less organized ME
2) I will propose that we raise the threshholds for notifications,
particularly at Jeff's level - I think that the sheer volume makes an
impression on Rick. Unfortunately, I think that it will not be in effect
until after the Dec bd meeting. FYI I have proposed this at least twice and
have been shot down by Greg and Rick, but now that a smart guy is proposing
it, it will probably get more attention.
3) We should use the executive report viewer as the mechanism for delivery.
I do not know who actually supports that thing so please let me know.
It has been important to AA for audit purposes to see "evidence" that Rick,
Jeff, Ken and Bd received appropriate notification - so that needs to be
considered.
Another possibility would be RisktRAC. The 3-d solution contracted for
contains an "Executive View" of "hot spots" . Unfortunately, even though
Jeff requested it on his desk top 5 months ago, we can't get the IT resources
to pay attention to it. IT however, has been interviewed several times for
magazines and have created such incredibly successful and useful products
such as EnergyDesk.com, Credit.com, En-lighten,
..............................................................................
..

Conceptually,
Notifications should take place before trading begins the next day. This may
be utopian, but it is fundamentally correct (just because Enron doesn't know
it is supposed to, doesn't make it right). I am certain that real risk
management organizations have a mechanism in place for this. It may be
necessary to create a SWAG process that is lightning fast with a more exact
process to follow.

Please have fixed by close of business today.

Ted