Minimizing_Risk

Minimizing Risk Ronald Moore University of Phoenix Chontele McIntyre, Esq. Minimizing Risk The business world today is a mine field for lawsuits and risk. Anyone in business must be well prepared to deal with the issues that may arise in their particular industry. The government has many regulations and guidelines in place to protect not only the consumer, but also the business owner. The business owner is responsible for knowing these regulations and following the guideline put in place. When a company is out of line with government guidelines, it must come into compliance. At the point when the business in non-compliant, actions such as lawsuits may occur against that organization. From the business simulation, Alumina, Inc. is currently in compliance with their regulatory guidelines, but should have been doing regular checks of the PAH levels to safeguard themselves from future incidents like what is being done in the Bates situation (Legal, n.d.). The main legal issues from the Alumina simulation were of regulatory compliance and environmental protection. Issues brought forward later were of ethics, liability, slander, and privacy. Both parties involved were faced with ethical issues, Kelly Bates for making the claim and Alumina for the actions that followed. Alumina was put in a position to defend against a liability claim and needed to be careful not to violate privacy policies in their own company. As far as the resolution, it was the best option as opposed to going to trial. A court case could last years, cost tons of money on both sides and be devastating to Alumina's business and reputation in the community. Negotiation to resolve an issue should always be tried before moving to more severe courses of action. In the future, Alumina should know the guidelines that would affect their business so that they would always be in compliance through constant quality checks and quick correction when they see issues on the horizon. A tort is a civil wrong that affects a person or property and injuries result (Jennings, 2006). There are intentional and non-intentional torts. Some intentional torts would include defamation and assault. A non-intentional tort could result from negligence. All torts are subject to suit and the guilty party is subject to a fine for damages resulting from the tort. In intentional tort such as assault, the victim could sue for damages to cover medical costs, loss of wages, and pain and suffering. An intentional tort to a property would include trespass. The tort of trespass could be remedied by paying for damages to the property. Negligence can be handled in many ways with tort law. Some negligence can be applied to both parties involved in an injury. The tort of negligence can be applied when one is careless and liability can be imposed. Everyone is expected to behave in a reasonable manner as any good citizen would. When a person or business does not act in such a manner and another party is injured, the tort of negligence has occurred. Property negligence can be imposed if someone is injured during a visit to another person’s property. To defend against negligence, the issues can be brought up that the accusing party was also negligent. The accuser could have contributed to the injury be being negligent himself or there may have been an assumed risk in the situation. Civil suits in regard to torts are brought forward more often and tort reform is currently undergoing investigation to put limits on verdicts and set standards for recovery (Jennings, 2006). In business, torts can be managed through proper preparation and preventive measures. An organization never wants to be sued for any reason. A multitude of variables exist to consider with lawsuits, but the most obvious are that they cost money and take time. There will always be risks when one enters business, but the objective should be to manage those risks effectively and protect the interest of the organization. Possessing, acquiring, and developing extensive knowledge of the industry and its guidelines is a key component to managing risks. An organization must be in compliance with government and industry regulations or face consequences. The number one way to avoid torts is to prevent the issues from occurring. Step two in managing risks is by constantly monitoring all areas that would be at risk of putting the company in a tort position. Self policing and quality checks can go a long way toward avoiding torts. Finally, taking corrective measure as problems arise will curtail any potential lawsuits due to negligence. For a company to protect itself from a property tort, they must insure that their property meets all local codes and standards so that no one is injured. Many people sue businesses because they were injured when visiting that business and on the businesses’ property. Following OSHA guidelines such as its regulations regarding aisles and passageways will help prevent people from getting injured during a visit to the company’s property (OSHA, 2009). Once the company has done its part, if an injury still occurs, the company may attempt to prove that the accident occurred due to negligence by the patron. Another issue a business may have to contend with is a personal tort such as defamation. A newspaper for instance would be a prime candidate to be sued for defamation. The newspaper could manage this risk by using reliable sources for their material and also doing background checks for articles and researching as much information on an issue as possible before publication. Making sure everything in an article is true should be the main goal of an editor. If the company is sued for defamation, the plaintiff may receive damages for economic loss due to damage of his or her reputation. Avoiding these and other torts will be essential to the longevity, prosperity, and continued good will of any business. References Jennings, M. M. (2006). Business: Its legal, ethical, and global environment (7th ed.). Mason, OH: Thomson/West. Legal Environment of Business. (n.d.). Business regulation. Retrieved from https://ecampus. phoenix.edu/secure/aapd/vendors/tata/sims/legal/legal_simulation1.html OSHA. (2009). General Requirements – 1910.22. Retrieved from: http://www.osha.gov/pls /oshaweb/owadisp.show_document'p_table=STANDARDS&p_id=9714