Subject: re : back office process definitions
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