Lesson not learnt / Raziah Bi Mohamed Sadique, Salwa Muda and Amariah Hanum Husin

The collapse of Enron marks the biggest scandal the United States ever experienced and arguably the biggest in the global financial market. As seen in the fraud triangle, all of the reasons contributed to the fraud were committed by Enron executives. The pressure to commit fraud as greed creeps in followed by justification to commit fraud has clearly motivated their acts in committing fraud for self-satisfaction. With a complicated business model that only a select few understand, it's tough to get the full picture. More than 300 percent of Enron's profits were generated in 1998, compared to the 1990s, when the company initially began operating. It expands too fast as well. Despite the complexity of the financial reporting and corporate structure, many investors did not bother to look into the finer aspects when an investment seemed to be paying off. What could go wrong with a company's trading in the energy and gas sector as the demand will always be there. Things eventually did go wrong. Once named the most innovative company, it collapsed in 2004 and all the ugly stories behind the so-called success were published. So many suffered from the collapse.