Directorate for Financial and Enterprise Affairs

The inside story of Enron was quite contradictory. The CEO’s of the company, the chief of the finance, the top brass of the company and the auditors of the company ganged up in unethical activities.

Decisions are legally based "mandatory decisions": The wording of the act does not use the term "risks". To celebrate those who have shown a willingness to embrace these values for the good of their employees, customers and industry, we present the World Finance Corporate Governance Awards.

Governance matters

Corporate Governance Code for Asset Management Companies Frankfurt, Germany, April Published by the German Working Group on Corporate Governance for Asset Managers.

Rules for managers and controllers. According to an empirical study, the average life expectancy of European and Japanese companies is What can risk managers learn from shipbuilders? Risk management as a fundamental management task. Corporate management as a basis.

In Germany, Austria and Switzerland, discussions relating to corporate governance have mainly focused on two objectives: Definition of a behavioural framework in the form of a "Code of Best Practice" for management bodies, particularly in terms of the interaction between management and monitoring bodies in a joint stock company. Increasing the attractiveness of Germany, Austria and Switzerland as locations for national and international investors.

In Germany, for example, this can be achieved by increasing the transparency in the dualistic corporate administration system. This will generally promote trust in companies' management and monitoring among international and national investors, customers, employees and the general public. Regulatory framework for management and monitoring of companies. Risk management as an obligation. Verification criteria for the "Business Judgement Rule".

There is no violation of obligation if the following criteria are met: Decisions are legally based "mandatory decisions": In compliance with legal, statutory, employment contract or affiliation decision obligations, the intention off the BJR is not to provide scope for illegal behaviour.

Therefore, the BJR concentrates on commercial decisions that, because they relate to the future , are characterised by uncertainty, risks and non-litigable assessments. Action without special interests and inappropriate influences: Board action must not be influenced by conflicts of interest, external influences or direct self-interest. The board must therefore act impartially and without influence. Action for the benefit of the company: This requirement is not met if a performance bonus that brings the company no future benefit is granted at a later date.

If the risk associated with the decision was assessed in a completely irresponsible manner, the "reasonable" criterion is not met. Action based on appropriate information: Commercial decisions are frequently based on instinct, experience, imagination and a feeling for future developments, which cannot be replaced by objective information. Thus, on the one hand the courage to take commercial risks should not be eliminated but on the other hand rashness and improvidence should not be encouraged.

Information reasonably considered to be appropriate is thus used as a basis. Information cannot be all-encompassing, but has commercial aspects.

In this context, the board should primarily identify risks in the context of the company's risk-bearing capacity and incorporate them into the decision-making process. Quantitatives Risk Management mit Risk Kit.

Quantitative Methoden im Risikomanagement. Komplexität verstehen, Dynamik beherrschen, Chancen und Risiken steuern. Risk Map What will be the key topics of interest to risk managers in ? Market price risks eg raw materials. Integration of risk management and decision-making process.

Risikomanagement - Von der Identifikation zur Simulation. Integriertes Kontroll- und Risikomanagement — sicher und intuitiv. TopDownloads Frühwarnsysteme im Unternehmen Downloads: Marktstudie Rating-Software für Unternehmen Downloads: Quantifizierung operationeller Risiken Downloads: Risiko- und wertorientierte Steuerung in der Assekuranz Downloads: Was tun mit Fake News?

The Management Board and its Risk Manager He faces maximum of years in prison and fines more than 7. After 4 days he announced big losses and the press release was misleading. The first company in California to do so. This caused large contamination.

Enron, Shell and Transredes are building a mile pipeline in Bolivia that has brought serious environmental and social problems to local communities living along its path. In the area of water resources, degradation of local roads, soil and air pollution. The power purchase agreement signed by Indian side and Enron contained the terms are too favourable to Enron.

In April, , the water supply was contaminated with toxic bacteria that cause skin irritation and possible neurological damage. The World Bank is objecting to the terms of a power purchase agreement between Enron and the state of Lagos Nigeria in December of It contained favourable terms to Enron.

To get British government contract of large public water utilities in Britain. Enron paid about U. National Security Council used its influence to continue the Enron contract of natural gas field in Mozambique. One of biggest corporations of America fell apart, almost in a blink of an eye, like the house of cards it was. There is apparently, questions whether the Bush administration gave illegal or unethical assistance to Enron, in repayment for the large contributors Enron gave liberally up to the earlier Bush Presidential campaigns.

The company had to sell 55 million shares. One can imagine the headline of the NY Daily News: Bush administration to Enron, Drop Dead. He is already well-known for his comments, when he took office, slamming traders as basically unintelligent parasites. Clinton administration did not initiate any action on Enron or the officers concerned for all these years.

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