Fall Of Enron Free Essay

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Fall Of Enron

What brought about Enron’s collapse? Risk vs. payoff is the decision any investor or large corporation must make on a daily basis. The biggest risk to large corporations comes from within its own ranks. Employees pose the greatest risk, especially those who are at the top and hold the power to make and influence critical decisions. Many bad decisions were made that brought on Enron’s demise. These decisions were made due to mismanagement of several functional areas of business. The primary areas were finance, accounting, and management. Major contributors that led to this mismanagement were the shift in company ethos, the structure of the company and its subsidiaries, and accounting practices that were complex and hard to understand.

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