Subject: Re: Back Office Process Definitions
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Thu, 1 Feb 2001 05:15:00 -0800 (PST)

The major groups are :

Manage Risk
Deal Clearing & Documentation
Logistics
Volume Management
Client Services or Settlements
Global Data Management

Within each of these major areas there groups of activities.  I have some 
charts I can provide to you (they are slightly dated, but still better than 
not).  To give you an idea, 

Manage Risk is comprised of :  Value books, Identify Limit violations, Flash 
P&L, Trade Capture, Generate Reports, etc.
Deal Clearing is comprised of: Prepare and distribute confirmations, 
verify/audit deals, broker checkout, etc.
Logistics is comprised of:  gather operational data, communicate with 
pipelines, plan product movement, nominate product movement, balance 
positions, etc.
Volume Management : validate transport statements, allocate volumes, 
reconcile imbalances, etc.
Client Services - Prepare and generate invoices, generate payment requests, 
resolve disputes on billing, cash management, reconcile A/R and A/P, etc
Global Data Management - set up new counterparties, maintain cp data, capture 
and validate settled prices, setup new pipelines and facilities, etc.

Generally, what is thought of as Financial Reporting at Enron is outside of 
Back Office Operations as is any trading or origination activity.

Sally/Bob - feel free to make any corrections/additions you see fit.

Lisa Petruszka@ENRON
02/01/2001 10:47 AM
To: Sally Beck/HOU/ECT@ECT, Mary Solmonson/HOU/ECT@ECT, Bob M 
Hall/NA/Enron@Enron
cc:  
Subject: Back Office Process Definitions

Hello team  - 

How does Enron define their back office processes?  It seems that every 
organization has their own definition of "back office" and the processes that 
fall within it.  So, I was curious to know if we had a consistent breakdown 
for Enron.  What I'm wondering is if there is a "common language" across 
Enron.  

Let me explain where I'm going with this question - I know that there will be 
participants from many parts of Enron at the session so we might have a risk 
of different definitions or assumptions being used during the conversations.  
If the groups define processes differently, even slightly,  there could be 
some confusion if we start a conversation at the session around the kinds of 
services to be offered.

To give you an idea of what I've seen, here are some different breakdowns or 
"models" used:

In Derivatives Strategy magazine's annual technology assessment, the 
following breakdown is used to evaluate software products:
Deal Capture
Special Deal Entry
EOD Mark to Market
P/L Calculations
Settlement
Confirmations
Payments
Payment Netting

The Bloomberg model, as depicted in Wall Street & Technology, January 2001, 
has the following high-level components:
Trade and Order Management
Electronic Trade Confirmation
Trade Allocation
Settlement Instructions
Electronic Settlement Links

Let me know your thoughts on this.  If you think there is a significant risk 
of different groups using different definitions for Enron we might be able to 
build in an exercise early on to get us over the hurdle.  

Lisa P
5-6352