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Enron Mail |
I would welcome the opportunity to discuss this with you both ( probably
separately given our diaries ). I am keen to understand whether we have the same perceptions of the control process and of the timetable for moving forward to our shared vision ! I will try to call later today Mike ---------------------- Forwarded by Mike Jordan/LON/ECT on 12/10/2000 11:38 --------------------------- Mike Jordan 12/10/2000 11:16 To: Fernley Dyson/LON/ECT@ECT cc: Steve W Young/LON/ECT@ECT, James New/LON/ECT@ECT, David Hardy/LON/ECT@ECT Subject: RAC issues Fernley Output from a meeting with David and James on the specific issues :- David's view is that a detailed factual list of issues is as yet not available but the summary is as follows :- At present Europe is substantially hitting the two key deadlines of 'officialisation' of the books by Risk management by 6 am Houston time and Summary DPR received in Houston by Noon ( indeed have internal deadlines 1 hour before that for contingency ) However, there are some IT problems in that the feeds to Houston post officialisation are currently taking a number of hours - and IT are currently looking to rewriting feeds and purchasing a dedicated server for feeding to Risktrac. Additionally, because of the time difference between the two targets and the fact that Risk Managament do not obtain MTM information until completion of the overnight batch ( ie start working first thing in morning UK time ) there has been scope for continuing to work on the raw MTM data. Consequently, there is potential for Risk Management 'top siding' for corrections such that the summary DPR will be 'different' from the risktrac information - We do topsides because it is impossible, given current systems, to rerun the overnight batch and extract the data from the valuation systems - our p&l explain processes are themselves spreadsheet based. The majority of topsides are caused by inaccurate data capture at the deal entry stage - itself a symptom of underinvestment in the data validation process of risk systems Whilst the topside adjustment is communicated to Houston - Risktrac requires a fully automated process Whilst we should consider the materiality of the topside - RAC rightly are trying to implement zero tolerance - to help flag all the issues Within the last fortnight we once received the incorrect curves on UK Power such that the full database was incorrectly valued - there was insufficient time ( for reason stated above ) to rerun and reextract and indeed today the batch failed because the UK Power server ran out of processing diskspace. We are doing a reasonably good job given the significant systems inadequacies we face ( and that have been flagged on a continuous basis - they are on the long list for development ). The recent daily taskforce meetings will provide more structured reporting of the root causes that will allow better escalation of systemic issues - and we should seek to discuss these in the context of the goal of corporate policy compliance ( we should recommunicate the policy internally within Europe )
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