Case | HBS Case Collection | November 2008 (Revised May 2016)

The Fall of Enron

by Paul Healy and Krishna Palepu


The case traces the rise of Enron, covering the company's business innovations, personnel management, and risk management processes. It then examines the company's dramatic fall including the extension of its trading model into questionable new businesses, the financial reporting problems, and governance breakdowns inside and outside the firm. The case offers students an opportunity to explore why Enron failed and to understand the systemic problems in governance that affected its board of directors, the audit committee, the external auditors, and financial analysts.

Keywords: Risk Management; Governing and Advisory Boards; Management Practices and Processes; Crime and Corruption; Financial Reporting; Corporate Governance;


Healy, Paul, and Krishna Palepu. "The Fall of Enron." Harvard Business School Case 109-039, November 2008. (Revised May 2016.)