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 ordering in general and economists in specific 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 important values were overlooked in a systematic summons which saw the firm shift its focus to the doctrine of subsidiarity and maximization of profits at all cost. By keeping each Enron division self-governing from the others, Hamilton (2003) noted that the financial manipulators and their closest internal associates only were aware of the bigger picture of Enrons financial position.I agree with Hamilton on the reasons for Enrons downfall. This is oddly true considering that overreliance on decentralization by a large company in an environment where there are inadequate operati onal and pecuniary controls is unremarkably 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 decision maker 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 confusing to the public, the shareholders and pull down the spin-doctors, hence the failure.In spite of Enrons dramatic move to formally admit bankruptcy in 2001, the failure did not occur by accident. accord to Temple (2014), there were several presuppositions to the event including a business culture that spawned greed and scam while maintaining cosmetic value rather than real value. pursuit themerger, the companys assets tremendously expanded to an extent that it was ranked seventh among the top-ten American c ompanies 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.