“When the world searches for a new voice in the wilderness, there are inevitably the bad voices, the ignoble dalliances that only speak of an uncertain future, and there are the ones that have something to offer.”
Lynn Brewer is one of those voices with something to offer. Brewer has unlocked the key to predicting corporate failures 1-2 years in advance with 83% accuracy which Nobel laureate Joseph Stiglitz says is exactly what matters—“the ability to predict in circumstances that matter.” Lynn is the CEO and Founder of The Integrity Institute® and the visionary and inspiration behind The Integrity Index—a revolutionary new corporate rating system based upon her 12 years of research & development and the analysis of nearly 1,000,000 financial statements between 1995-2011. The Integrity Index uses a predictive model, inspired by mathematical game theory, proven to be a statistically significant advancement in its ability to predict allegations of securities fraud and corporate failures, allows investors, journalists, CEOs, Boards, employees and consumers to make better decisions by using data and technology to look into the future rather than assume past performance equals future success. The Integrity Index can predict allegations of securities fraud 1-2 years in advance and predicted all of the major failures of 2001 and 2008 as part of the validation of the model’s efficacy.
Beyond her work with The Integrity Institute, Lynn is most widely known as an Enron Whistleblower. For nearly three years, she was in a position at the energy giant to witness numerous instances of illegal and corrupt dealings, including bank fraud, espionage, power price manipulation, and the gross overstatements to the press, public, and financial world. In 2006, she was one of the last to meet with former CEO Ken Lay, after his conviction and just two weeks before his untimely death in which they discussed her pursuit of an answer to the question that has haunted most investors — why didn’t he see Enron’s demise coming? Believing Ken Lay was like most CEOs blinded by their success, Brewer saw Enron as the beginning of a changing landscape in our capital markets, writing in her 2002 autobiography Confessions of an Enron Executive: A Whistleblower’s Story: “Look to Enron to foretell the future.”
In 2005, in the early stages of development of The Integrity Index, having identified the same pattern of behaviors that existed at Enron in companies like Bear Stearns, Lehman Brothers, Washington Mutual, and may others, Lynn Brewer foreshadowed the 2007-2008 financial crash in a letter to Warren Buffett, on the eve of giving a keynote address to Berkshire Hathaway’s elite group of CFOs. In 2007, recognized by the Nobel Peace Centre for her leadership as the subject of a documentary, Lynn faced her strongest critics who would attempt to assassinate her character as she was on the verge of a breakthrough in her modeling efforts that would have revealed severe structural defects in several Fortune 100 companies, yet she remained undaunted in the task of finding a way to alert those of the looming crash. Ultimately, in 2009, in recognition for her willingness to stand up against corporate malfeasance and having faced her harshest critics who sought to silence her, Lynn Brewer was recognized as a historical figure by the Nobel Peace Museum as her documentary became a permanent exhibit.
Beyond her extensive writings on the subject of corporate integrity, Lynn Brewer has received numerous honors and awards for her work, including the Nobel Peace Centre and Nobel Peace Museum. Lynn is also an award-winning author, as well as a co-author of several books on the subject of corporate integrity, including Confessions of an Enron Executive: A Whistleblower’s Story, a riveting account of her career at Enron and her decision to blow the whistle. She is currently working on her sixth book entitled Good to Greed: Predicting Corporate Failures which outlines her exhaustive research and development of The Integrity Index. As a public speaker, she has captivated audiences worldwide, with her personal story and the strength of her character to overcome numerous challenges to bring The Integrity Index to market.