The thesis delves into the Enron scandal, which was a significant corporate failure that altered corporate governance and financial supervision. It looks at how Enron manipulated energy markets, particularly in California, leading to a severe crisis and over $40 billion in state debt. The examination also explores Enron's accounting errors, comparing GAAP and IFRS standards to emphasize failures in risk management. By extensively studying Enron's corporate culture, financial practices, and regulatory loopholes, this investigation delves into the reasons and outcomes of its collapse. The main discoveries reveal the underlying problems that allowed Enron's deceit and emphasize the importance of transparency and ethical supervision in the business sector. The thesis ends with recommendations for enhancing corporate governance and mitigating upcoming financial risks.