Rick --

Amr makes some good points.  Specifically, I think that having Amr report to 
you directly would allow his "audit" function to receive the necessary 
independence and support.  More importantly, I think that you could use Amr 
as a "test" whenever confronted with large differences.  Finally, his 
reporting to you gives you a very valuable resource to use as you see fit 
across the organization.

Let's talk.

Jim



---------------------- Forwarded by James D Steffes/NA/Enron on 04/26/2001 
08:21 AM ---------------------------
From: Amr Ibrahim@ENRON_DEVELOPMENT on 04/20/2001 09:19 AM
To: James D Steffes/NA/Enron@Enron
cc:  

Subject: Placing of Risk Analytics - for your comments

Jim:
This short note is to highlight the salient reasons for recommending Risk 
Analytics to remain reporting to you as a "first best" option.  If this is 
not tenable, the "second best" option is for the unit to report to Rick 
Shapiro.  

Risk Analytics is function that is ought to be performed holistically across 
all of Enron,s business units and regions.  Limiting it to EES (even by 
implication) is likely to reduce its effectiveness in measuring the 
regulatory risks across the board. 
Risk Analytics is function that ought to be performed in an independent 
manner so that to convince all of Enron,s business units of the arm-length 
nature of the exercise.   Linking it to EES (even by implication) may reduce 
openness of the target group be that an activity or a region.  The experience 
so far is that this openness was essential in securing channels (formal and 
informal) for communication and feedback that resulted in much higher levels 
of cooperation and information exchange. 
Risk Analytics function tends to be slightly aggressive and tenacious in 
nature; it digs deep into deals and processes.  An independent unit is better 
capable of reflecting this characteristic to the benefit of all of GA units, 
but be solely responsible for the shortcoming, if any.  
Risk Analytics requires a superb communication interface to ensure entry to 
deals and processes on one hand, and communicate results on the other.  It 
requires a very efficient, highly developed, and effective platform that can 
take its comments and products to literally all levels of Management in the 
Corporation in the Americas and overseas.    

Please let me know if you would like to discuss these points further.

Brgrds

AI