Vince/Rakesh,

I attended the Operational Risk meeting today that went on for almost 3 hours.  Other attendees were: 
Andrew Parson (IT and assurance)
Mark Walker (Investment Valuation)
John Sorrelis (from AA)
Shawn from asset valuation, 
and Wanda Curry

It was a general brainstorming session on what constitutes operationl risk, and how we can try to measure it within the organization.  The initial step will be to come up with the key risk indicators.  An initial list will be worked out by Mark and Andrew for further discussions. There is also an AA model that will be discussed to come up with what should be done at Enron.

Currently we will be going with a qualitative approach based on the key indicators developed.  Over time we would go with the standardized approach.

Mark was very interested in discussing the model he has developed for quantifying operational risk.  A meeting to discuss that with the Research group will be held next week, and I will get an appropriate date for that.  Wanda very much wanted you to attend, Vince.  

We can talk on Friday or early next week on what our participation should be.

Regards,
Sandeep.