Rick:

As per our discussion this morning, please find attached the general description for Risk Analytics & Fundamentals Group.  


I welcome any question and/or suggestion.  

Best regards

AI
3-3037

Risk Analytics & Fundamentals Group

This Group has three largely inter-related functions.  They are:   
1)	Risk Analytics:
The primary purpose of this new group is to provide workable, tested, and cost-effective processes to identify, quantify, mitigate, and/or manage regulatory risks embedded in Enron's businesses.  The immediate objectives of the group are: 
i)	Establish, test, and implement methodologies for identifying, quantifying, and mitigating/management of the regulatory Risks in URM in North America.  
ii)	 Establish, test, and implement methodologies for identifying, quantifying, and mitigating/management of the regulatory Risks in the relevant activities for EWS in North America.  Extend the system to Europe.
iii)	Provide, test and implement methodologies for identifying, quantifying, and mitigating/management of the regulatory risks in the three most important commodities in EGM, and EIM (Coal, Steel, and Forest Products).  Extend the system to Europe, if applicable.

Finally, the Group should periodically aggregate the risk findings in the different business units in a single report for communication and resource allocation purposes by GA Management.   

2)	Fundamentals: 
The secondary purpose of the group is to initiate the Regulatory Fundamentals Section.  Its purpose is to provide analyzed regulatory information to commercial/regulatory data that should enhance the range of the products and services that GA is providing to the different commercial teams.  Examples of such regulatory/commercial data include interstate electricity sales and prices, availability of transmission capacity on different interties, demand and supply analysis on the appropriate customer level,?etc.  

The Fundamentals section should also work as a powerhouse for GA Support Services (GASS) to provide in-depth analysis of regulatory problems/issues.  It should assist GASS in providing consulting services to the different commercial teams in issues related to risk measurements and mitigations.  

The immediate objective of this activity is:
i)	Establish, test, and run systems for regulatory fundamentals in EWS (Gas and Electric).

3)	International Regulatory Support:
The third purpose of the group is to provide Regulatory Support to Enron's Assets, and commercial positions, in Venezuela, Argentina, Brazil, and India on ad-hoc basis to identify the operational regulatory risks.  

Head Count
Guillermo Canovas
Bryan Gottfredson
Jan Haizmann (20%).
Albert Levy
Amr Ibrahim