Subject: new risk management policy
enron corp . and its subsidiaries ( the " company " ) are exposed to market , credit , operational and liquidity / funding risks in the normal course of its business activities . the enron corp . board of directors approved a new risk management policy ( the " policy " ) on august 14 , 2001 . this policy establishes a framework under which the company ' s exposure to risks shall be evaluated , 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 transactions 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 various 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 .
management and employees are responsible for complying with the risk management policies and procedures addressed in this policy , available at http : / / home . enron . com / resources . following an initial transiton period , various individuals within the key functions participating in the company ' s risk management framework will be required to sign a compliance certificate , an example of which is attached to the policy as appendix h .
if you have any questions , please contact cassandra schultz , cassandra . schultz @ enron . com , 713 - 853 - 0429 who will put you in touch with the appropriate risk assessment & control representative . note : this is a confidential policy , not for distribution to anyone outside of the company without specific authorization from the chief risk officer .