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Enron Mail |
Enron Corp. and its subsidiaries (the "Company") are exposed to market, cre= dit, operational and liquidity/funding risks in the normal course of its bu= siness activities. The Enron Corp. Board of Directors approved a new Risk = Management Policy (the "Policy") on August 14, 2001. This Policy establish= es a framework under which the Company's exposure to risks shall be evaluat= ed, managed and controlled, and pursuant to which capital will be allocated= and preserved. The Policy focuses on four major types of risk: (a) market= risk; (b) credit risk; © operational risk and (d) liquidity/funding risk= . These risks shall be managed on a portfolio basis for standard transacti= ons via various market risk limit structures and credit approval processes,= and for non-standard transactions via the Transaction Approval Process and= the Guarantee Approval Process. This Policy provides an overview of vari= ous risk measurement tools and limits to be applied to these risks, and the= roles and responsibilities for the key participants of the risk management= framework. =20 Management and employees are responsible for complying with the risk manage= ment policies and procedures addressed in this Policy, available at http://= home.enron.com/resources. Following an initial transiton period, various i= ndividuals within the key functions participating in the Company's risk man= agement framework will be required to sign a Compliance Certificate, an exa= mple of which is attached to the Policy as Appendix H. If you have any questions, please contact Cassandra Schultz, cassandra.schu= ltz@enron.com, 713-853-0429 who will put you in touch with the appropriate = Risk Assessment & Control representative. Note: this is a confidential pol= icy, not for distribution to anyone outside of the Company without specific= authorization from the Chief Risk Officer.
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