Andy Fastow, former CFO of Enron and architect of the greatest fraud in American history, seeks to shed some light on what went wrong. He makes no denial and seeks no redemption, but he is clear that “technically [he] always tried to comply with the rule book“.
Addressing our FTSE100 audit and risk committee chairs’ group, Andy acknowledged that while governance has come a long way since the early 2000’s, boards must continue to be vigilant of the risks associated with operating in the grey area.
Looking at each of the factors which allowed Andy to operate unchallenged –and not only this, but actually to support him, to reward him, at times even congratulate him –helps identify some of the pitfalls all companies should be wary of.
Read the summary of Andy’s presentation which covers the role that several factors played in the collapse of Enron: A conversation with Andy Fastow