A trader or structurer whose deal a manager scrutinized one day might be in a position to offer that risk manager a new position the next. Astute risk managers were careful not to burn bridges. Risk managers knew that they would suffer if they blocked deals or did not support the favorable management-approved mark-to-model valuations.
Even worse, risk managers were subject to Enron’ “rank and yank” system of performance review. Under that system, anyone could contribute feedback on anyone, and the consequences of a bad review were high. Risk managers who blocked deals could expect to suffer in “rank and yank”.