Message-ID: <13913207.1075856079248.JavaMail.evans@thyme> Date: Fri, 12 Jan 2001 14:25:00 -0800 (PST) From: sally.beck@enron.com To: david.port@enron.com Subject: Re: Doorstep and Risk Reviews Cc: shona.wilson@enron.com, cassandra.schultz@enron.com, ted.murphy@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: shona.wilson@enron.com, cassandra.schultz@enron.com, ted.murphy@enron.com X-From: Sally Beck X-To: David Port X-cc: Shona Wilson, Cassandra Schultz, Ted Murphy X-bcc: X-Folder: \Sally_Beck_Jun2001\Notes Folders\Sent X-Origin: Beck-S X-FileName: sbeck.nsf I don't think that the doorstep reviews are the right venue for this. I believe that to address what seems to be David's concerns would be better handled with an appropriate person deemed to lead a special project in a directed timeframe with a well defined scope. We purposefully utilize differing personal on the doorstep reviews and it would seem that concerns over proper valuation should be addresses in a timeframe that is not dependent on the schedule of doorstep reviews around the world. From: David Port @ ENRON 01/12/2001 12:49 PM To: Shona Wilson/NA/Enron@Enron cc: Cassandra Schultz/NA/Enron@Enron, Bjorn Hagelmann/HOU/ECT@ECT, Rudi Zipter/HOU/ECT@ECT, Vladimir Gorny/HOU/ECT@ECT, Oliver Gaylard/LON/ECT@ECT, Lloyd Fleming/LON/ECT@ECT, Ted Murphy/LON/ECT@ECT, Sally Beck/HOU/ECT@ECT Subject: Re: Doorstep and Risk Reviews Whatever we need to do, we should do. Shona Wilson 01/12/2001 12:26 PM To: David Port/Market Risk/Corp/Enron@ENRON cc: Cassandra Schultz/NA/Enron@Enron, Bjorn Hagelmann/HOU/ECT@ECT, Rudi Zipter/HOU/ECT@ECT, Vladimir Gorny/HOU/ECT@ECT, Oliver Gaylard/LON/ECT@ECT, Lloyd Fleming/LON/ECT@ECT, Ted Murphy/LON/ECT@ECT, Sally Beck/HOU/ECT@ECT Subject: Re: Doorstep and Risk Reviews Doorstep is a joint MRM RAC and Energy Ops review process. If we want to include a full review of all the mtm methodologies we need to start building this into the doorsteps by ensuring that the RAC person attending the doorstep has the relevant experience to perform this review and that the time scheduled to do the review is adequate. To: Cassandra Schultz/NA/Enron@Enron, Shona Wilson/NA/Enron@Enron, Bjorn Hagelmann/HOU/ECT@ECT, Rudi Zipter/HOU/ECT@ECT, Vladimir Gorny/HOU/ECT@ECT, Oliver Gaylard/LON/ECT@ECT, Lloyd Fleming/LON/ECT@ECT cc: Ted Murphy/LON/ECT@ECT Subject: Doorstep and Risk Reviews I am getting a strong sense that there are many holes, patches and workarounds in the upstream risk systems, relating to their ability to reflect accurately the valuation, and the risk attached to the products that get traded. I would like to use the doorstep process and the risk review process to establish precisely what those holes are, if we don't already know. Here is an example: "All of our systems value options at-the-money, regardless of moneyness." True or False ? Can you please include this concept in those exercises. The aim is, at least by the end of Q1 we can put our hands on a summary of everything. Thanks DP