Problem: BODY: It's the last day and only $135,000 more to go! We're at 95.35% of our $2.9M goal, 70% contribution rate, and 75% participation rate. I've attached the latest report so you can see how your business unit or functional group is doing. The final push is on. Wouldn't it be great to get to $2.9M by 5:00 p.m. today! Please call if I can help you in any way today. I know we can get there. Thanks for all of your help, Kathy
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A: SUBJECT: Updated UW Reports

Problem: BODY: As you are all aware, the latest Risk Management Policy specifically addresses Operational Risk, and more specifically commits Enron to develop systems and processes that enable Enron to better evaluate its operational risk. To that end, I have asked Wanda Curry to lead a cross-functional team (the "Operational Risk Committee"), which will be jointly accountable for meeting this commitment. I would like to have representatives from Enron Assurance Services, RAC, Research, Information Technology, GRMO and Arthur Anderson. Enron's primary objective for monitoring its exposure to operational risk is to (a) identify the derivation of operational risk exposures and (b) improve the Company's systems and processes to mitigate such risk. The guidelines for operational risk assessment are essentially undeveloped. It will be our challenge to identify, assess, categorize, quantify and mitigate exposure to operational risk. The risk capital allocation process includes the consideration of operational risk. Initially, this assessment will be based on a qualitative view of the business unit's internal processes, people and systems. The initial goal, for completion prior to year-end 2001, is to establish a baseline and/or report card to convey a sense for where we are now. It is Enron's objective, as reflected in the Risk Management Policy, to increase the sophistication of risk measurement for operational risks through documented qualitative assessments and quantitative measurements. A list of additional objectives to be addressed by the cross functional team has been prepared by Wanda. These include: Develop a qualitative operational risk assessment approach and implement. This approach should enable a quick review of key functions and standards to identify weaknesses, monitor progress over time, and provide management with a representation of operational risk. Assess and improve integrity of daily risk reports, i.e. require confirmation that all books are captured, aggregated and processed through RisktRAC, CreditAg, and Infinity applications Ascertain the extent of spreadsheet usage across Enron and develop the ability to monitor NOP, V@R, and MTM for spreadsheets separately, i.e. a Spreadsheet DPR. Work with GRMO to develop "rules of use" for financial valuation models and spreadsheet "books" Utilize the existing RMS database and develop the ability to monitor intercompany - interbook activity (initially for forward positions only) and report variances Recommend metrics for quantitative measurement of operational risk Access need for additional or improved risk databases Wanda will be contacting each of you to identify your designated operational risk contact that will participate on this cross-functional team. Thanks,
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A: SUBJECT: Operational Risk Management

Problem: BODY: 8214 Colonial Oaks Lane Spring, Texas 77379 December 20, 2001 Mr. Harry Arora Regarding: energy trading positions I am writing to you to express my desire to be apart of the Wholesale Power and Gas Trading operation that will potentially be created with an entity that has a high credit rating. I have been working for Rogers Herndon in Enron Wholesale Services on the Options Desk. In this role I have modeled the power options that are embedded in the various deals done through Enron Energy Services with large industrial and commercial clients. In addition, I profitably managed the positions and priced deals for structurers and originators. I realize that now is a difficult time but am confident that I would make an excellent addition to your team for several key reasons: ? Proven experience in the financial markets and direct trading experience in various markets, including electricity and natural gas, mortgage backed securities, U.S. Treasury securities, foreign exchange, EuroCurrency and EuroDollar deposits ? Team player and high work ethic, successfully balancing trading opportunities with managing risk ? Solid portfolio management and risk management experience in electricity and mortgage banking ? Five years direct experience in trading, risk management, structured products and marketing of electricity for the United States ? Actively involved in the physical markets and strong understanding of the western grid ? Experience trading OTC forwards and options at major hubs in other NERC regions such as Cinergy, Entergy, ERCOT, NEPOOL and PJM ? Worked for both unregulated power marketers and regulated utility ? Extensive experience in derivatives and structured products ? Ability to effectively work with marketers pricing and structuring deals for industrial and commercial end users of energy ? Strength in mentoring junior traders Thank you,
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A:
SUBJECT: Wholesale Power and Gas Trading operation with new entity