The Enron Fiasco: So many lessons

Business Week- Readers Report

"The fall of Enron" (Cover Story, Dec,17) provided real insight. Having once been described in the press as a guru, I sympathize with the four experts you quote in the panel "Everyone loved Enron." The issue is not that none of them could have predicted Enron Corp.'s demise but that they had all praised Enron at a specific point in time under specific market conditions without the aid of a due diligence process.

Just as the climate change made the most successful predator on this planet-the Tyrannosaurus Rex-extinct, a change in the business climate made Enron extinct. New models have been suggested that allow a more accurate prediction of the inevitable changes in the business climate, and these would have helped Enron.

It is not skillful to predict success or failure; it is skillful to know when the risk of both is at its peak.

By Gerald Michaluk

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