The Discursive Management of Financial Risk Scandals Case Study

The Discursive Management of Financial Risk Scandals - Case Study ExampleHamilton (2003) attributed Enrons failure to a culture of conceit that led the society in general and economists in detail to buy the idea that it had the capacity to handle complex corporate risks in a successful manner. As such, Enrons corporate culture was less concerned about advancing the ethics of respect and honesty. These weighty values were overlooked in a systematic process which saw the firm shift its tenseness to the doctrine of subsidiarity and maximization of profits at any cost. By keeping each Enron function autonomous from the others, Hamilton (2003) noted that the pecuniary manipulators and their closest internal associates only were aware of the bigger picture of Enrons fiscal position.I agree with Hamilton on the reasons for Enrons downfall. This is especially true considering that overreliance on decentralization by a large company in an environment where there are inadequate operationa l and fiscal controls is normally associated with failure. In addition, the seemingly diverted, hands-off company board including the chairman was a recipe for financial failure, as they could not initiate adequate checks and balances on the executive managers such as Skilling (Ailon, 2012). As a consequence, the accounting staffs, auditors, and company lawyers equally failed in their mandates. Eventually, the companys complex financial records became so misidentify to the public, the shareholders and even the spin-doctors, hence the failure.In spite of Enrons dramatic move to formally admit failure in 2001, the failure did not occur by accident. According to Temple (2014), there were several presuppositions to the detail including a business culture that spawned greed and scam while maintaining cosmetic value rather than material value. Following themerger, the companys assets tremendously expanded to an extent that it was ranked seventh among the top-ten American companies in terms of revenue. Managing the massive assets usually does not want any form of risky investments and misrepresentation of financial statements as Enron did before its collapse.