Recognizing_and_Minimizing_Tort_and_Regulatory_Risk_Plan

Recognizing and Minimizing Tort and Regulatory Risk Plan University of Phoenix Law 531 March 9, 2010 Recognizing and Minimizing Tort and Regulatory Risk Plan This assignment is about writing a plan for Alumina Inc. An aluminum maker company with a total of $4 Billion sales volume, based in the U.S. 70% of Alumina's sales derive from the United States market and the rest is dispersed out of 8 different countries. Five years ago, Alumina Inc. was found liable of contradicting Federal Laws. Alumina has current tort liabilities due to the previous lawsuit and recent complaints that compound probable risks to company. This is the reason why the author of this paper is trying to develop a plan to help the company face these types of challenges. This plan will clarify how regulatory risks such as tort load can be identified and managed through protective, detective, and counteractive procedures, with the intent to help Alumina moderate and tackle these types of liabilities and legal matters. What is a tort' Tort is a civil wrong that provides a remedy for its victim. There are three different types of torts: Intentional, negligence, and strict tort liability. Intentional, they come from intentional acts, for example, the striking of another person. Negligence, are those committed out of carelessness and not with a direct intention, for instance, careless driving which ends in an accident. Strict liability, are those that are considered with a direct intention, for example, something done with consideration. There are others definitions of torts, such as, personal torts and property torts. Trespassing on a private property is considered a property tort. Defamatory actions are considered personal torts. Authoritarian risks are risks associated with the failure to comply with a whole host of governmental regulations. Such risks impact a company’s existing assets, earnings, and often, reputation. In the context of tort liability arising out of non-cooperation of government policy, it is in every company’s business interest to allocate resources to identify those risks, and to execute action plans to avoid such risks. In the event those risks do appear, the company needs to have system in place to properly manage and contain financial and reputational loss to the company. Additionally, companies will also benefit by anticipating what dogmatic changes are forthcoming so as to adjust the business practices consequently, thus minimizing the disclosure to tort liability arising out of refusal of rule. Given the fact that Alumina was cited by the government five years ago for discharging effluents with higher than allowable meditation of polynuclear aromatic hydrocarbons (PAH), this paper will first focus on ways to identify risks of noncompliance with environmental regulations, followed by the diverse anticipatory, detective, and corrective measures to be taken at various stages of growth of those risks. Identifying risk of tort liability involving disobedience of regulations: The initial point of identifying risks should be the known risks. In the situation obtainable in the simulation, Alumina was cited for atmosphere directive violations five years ago. The company should review the various regulations involving effluents discharge, in terms of amount of discharge, and the chemical composition of the discharge. In today’s business surroundings, organizations must be dynamically occupied in upward, maintaining and following up on a defensive and corrective action plan that applies to the association industry model. Organizations are subject to contend with dogmatic risks, such as tort liability on any given day. Organizations that fail to conform to local, state or federal governmental regulations will exposed the organization to regulatory risks that will impact the company’s existing assets, earnings, and most often their character in the media. Organizations that distribute interior capital to recognize dogmatic risks and execute obtainable action plans may avoid the option of refusal of command directive and tort responsibility action. Association preventive measures provide the internal controls of the day to day business operations that reduce, limit and eliminate the organizations exposure to tort liability, fines and criminal penalties. A detail effective preventive measure plan will insure the organization’s best working practices are in place. The business simulation centered on Alumina; a company with previous liabilities that had action brought against the company five years ago. Alumina has current tort liabilities due to the previous lawsuit and recent complaints that compound potential risks to company. These risks have been identified and reviewed by Learning Team B. The list of tort liabilities and dictatorial risks are: Insult, First Amendment, and Freedom of Information Act. These risks are the most impacting and pertinent when compared to Alumina current and prior liabilities. Community charge is made to the company claiming that they are still polluting the local water supply. Of which the company was found liable of five years ago in a different case. Since then the company has made necessary changes and are in line with federal policy. Alumina believes that this accusation is unfounded and is offense against the company. Since the company roots the claim in prior poor presentation, community awareness will be a middle motivator in resolving the issue. This accountability could have been concentrated significantly by Alumina by allowing public awareness of national dogmatic improvements and obedience over the last five years. Given the fact that Alumina was cited by the government five years ago for discharging effluents with higher than permitted concentration of PAH, this paper will first focus on ways to identify risks of non-compliance with environmental regulations, followed by the various preventative, detective, and corrective measures to be taken at various stages of development of those risks. Identifying risk of tort liability involving non-compliance of regulations: The starting point of identifying risks should be the known risks. In the scenario presented in the simulation, Alumina was cited for environment regulation violations five years ago. The company should review the various regulations involving effluents discharge, in terms of amount of discharge, and the chemical composition of the discharge. Developing a generally good reputation in regards to its fulfillment with the Environment Protection Agency (EPA) regulations and standards does not excuse prior damages Alumina caused in their previous violation. Regardless to the standing of the company, Alumina Inc. is still subject to tort liability. Tort is defined as, a wrongful act other than a breach of contract for which relief may be obtained in the form of damages or an injunction (Merriam-Webster Online dictionary, 2010). Freedom of Information Act: This Act allows the public body to gain access official records that are maintained by the governing agency. It also allows the company to disclose nine of exemptions and three exclusions may be withheld from public disbursement. Corporate image in the community businesses have a moral responsibility to disclose a portion of their inner workings to the community that pay patronage to their doors. Consult mediation from American Arbitration Association (AAA): Provides administrative services in the U.S from filing to closing. AAA sets hearings, appoints mediators and arbitrators to provide clients with information how to dispute resolutions along with options. Negligence the actions or performance related to the standards that are not performed within the guidelines. To prevent accusations of negligence it is beneficial to the company by revealing the process their business operations. In conclusion, In the event that an organization have been identified with a regulatory government violation or a tort liability, the organization need to have a system in place to manage properly the sequence of events that will follow the claims identified. The ability of the organization to recognize regulatory risks will require the organization to identified and managed through the various preventive, detective and corrective measures through their organization plan. The plan should begin with identifying risks of tort liability involving non-compliance of regulations. Public accusation is made to the company claiming that they are still polluting the local water supply. Of which the company was found liable of five years ago in a different case. Since then the company has made necessary changes and are in line with federal regulations. Alumina believes that this accusation is unfounded and is defamation against the company. Since the claim is rooted in prior poor performance by the company, public perception will be a central motivator in resolving the issue. This liability could have been reduced considerably by Alumina by allowing public awareness of federal regulatory improvements and compliance issues. References Jennings, M. (2006). Its Legal, Ethical, and Global Environment (7th ed.). Phoenix, Arizona: Thomson. www.merriam-webster.com/dictionary/tort