Re: Working with ENRON on catastrophic risk

Howard,

Thanks for the message and the paper.
We shall hold an internal follow-up meeting next Monday to
review potential projects on which we could cooperate in
the future.

Vasant and I will contact you to discuss our recommendations
regarding the future research agenda.

Vince

"Kunreuther, Howard" <kunreuth@wharton.upenn.edu< on 12/14/2000 10:07:11 AM
To: "Bouillion (E-mail)" <james.l.bouillion@enron.com<, "Carrick (E-mail)"
<george.carrick@enron.com<, "Hoog (E-mail)" <david.hoog@enron.com<, "Kaminski
(E-mail)" <vkamins@enron.com<, "Vasant (E-mail)" <vshanbh@ect.enron.com<
cc: "Doherty, Neil A" <doherty@wharton.upenn.edu<, "Kleindorfer, Paul"
<kleindorfer@wharton.upenn.edu<, "Thomas, Louis A"
<thomas@wharton.upenn.edu<, "Weigelt, Keith W" <weigelt@wharton.upenn.edu<
Subject: Working with ENRON on catastrophic risk

Dear Vince, Jim, George, David and Vasant:

Neil Doherty, Paul Kleindorfer and I very much enjoyed our discussion last
Wednesday at Wharton with you on future joint research with Enron over the
coming year. In particular, we see the whole area of capital management and
catastrophic risk as a fruitful area for foint collaboration. I am sharing
this message with Louis Thomas and Keith Weigelt who direct the FAP MBA
program in the hopes that we can find a team to work with us on these issues
next semester.

Attached is a revised version of our paper on "Evaluating Risk Bearing,
Mitigation and Risk Transfer Using Exceedance Probability Curves: Project
Update". We would greatly appreciate you and your colleagues looking at the
section on "Cat Bonds Covering Multiple Risks" (pp. 15-19) to see whether our
example and conclusions make sense to you. We look forward to working with
your team at Enron regarding ways that we can build on these preliminary
findings to make cat bonds for weather risks more attractive.

Best wishes for the holiday.

Regards,

Howard
Howard Kunreuther
Cecilia Yen Koo Professor of Decisions Sciences and Public Policy
Chairperson Operations and Information Management Department
1326 Steinberg Hall-Dietrich Hall
Wharton School
University of Pennsylvania
Philadelphia, PA 19104-6366
Phone:215-898-4589
FAX:215-573-2130
Email:kunreuth@wharton.upenn.edu

- EPCurvePaper-FINAL-D10.doc