Risk Management and Corporate Governance: The Case of Enron

ArXiv ID: ssrn-468168 “View on arXiv”

Authors: Unknown

Abstract

Enron Board’s Finance Sub-Committee’s approval of the first bankrupting Raptor transaction, Talon, is examined in as much detail as published documents allow.

Keywords: Corporate Governance, Risk Management, Enron, Derivatives, Equities

Complexity vs Empirical Score

• Math Complexity: 0.5/10
• Empirical Rigor: 0.5/10
• Quadrant: Philosophers
• Why: This is a qualitative legal and organizational analysis of Enron’s corporate governance, focusing on board oversight and risk management, with no mathematical modeling or data-driven empirical testing.

  flowchart TD
    A["Research Goal"] --> B{"Methodology"}
    B --> C["Document Analysis"]
    C --> D["Input: SEC Filings &<br/>Board Meeting Minutes"]
    D --> E["Computational Process:<br/>Raptor Transaction Reconstruction"]
    E --> F["Key Findings/Outcomes"]
    F --> G["Governance Failure:<br/>Lack of Independent Oversight"]
    F --> H["Risk Failure:<br/>Inadequate Risk Management<br/>& Derivative Controls"]