Message-ID: <8354831.1075863389911.JavaMail.evans@thyme> Date: Thu, 23 Aug 2001 23:08:56 -0700 (PDT) From: 40enron@enron.com Subject: New Risk Management Policy Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable X-From: Rick Buy- Enron Corp. Chief Risk Officer@ENRON X-To: All Enron Worldwide@ENRON X-cc: X-bcc: X-Folder: \RBENSON (Non-Privileged)\Benson, Robert\Inbox X-Origin: Benson-R X-FileName: RBENSON (Non-Privileged).pst Enron Corp. and its subsidiaries (the "Company") are exposed to market, cre= dit, operational and liquidity/funding risks in the normal course of its bu= siness activities. The Enron Corp. Board of Directors approved a new Risk = Management Policy (the "Policy") on August 14, 2001. This Policy establish= es a framework under which the Company's exposure to risks shall be evaluat= ed, managed and controlled, and pursuant to which capital will be allocated= and preserved. The Policy focuses on four major types of risk: (a) market= risk; (b) credit risk; (c) operational risk and (d) liquidity/funding risk= . These risks shall be managed on a portfolio basis for standard transacti= ons via various market risk limit structures and credit approval processes,= and for non-standard transactions via the Transaction Approval Process and= the Guarantee Approval Process. This Policy provides an overview of vari= ous risk measurement tools and limits to be applied to these risks, and the= roles and responsibilities for the key participants of the risk management= framework. =20 Management and employees are responsible for complying with the risk manage= ment policies and procedures addressed in this Policy, available at http://= home.enron.com/resources. Following an initial transiton period, various i= ndividuals within the key functions participating in the Company's risk man= agement framework will be required to sign a Compliance Certificate, an exa= mple of which is attached to the Policy as Appendix H. If you have any questions, please contact Cassandra Schultz, cassandra.schu= ltz@enron.com, 713-853-0429 who will put you in touch with the appropriate = Risk Assessment & Control representative. Note: this is a confidential pol= icy, not for distribution to anyone outside of the Company without specific= authorization from the Chief Risk Officer.