
82 Operational Risk Control
4.6 Management risk at Tyco International
Based in Bermuda with headquarters in Exeter, New Hampshire, at its high-water
mark Tyco International had 240 000 employees and its products ranged from
security systems and safety devices to financials and syringes. In the late 1990s the
conglomerate was attracting the market’s attention in a big way. Its investors
considered it to be a sort of multi-identity holding company. But, in February
2002,
䊏 Fears about its opaque accounting had branded Tyco ‘the next Enron’, and
䊏 As investors fled, the market vaporized more than $160 billion in Tyco’s
capitalization.
Many lessons can be ...