Recognizing and Minimizing Tort and Regulatory Risk Plan

Recognizing and Minimizing Tort and Regulatory Risk Plan
      University of Phoenix
      June 28, 2010
      Recognizing and Minimizing Tort and Regulatory Risk Plan
      The failure to comply with governmental regulations is the cause of a host of regulatory risks. These risks have the potential to impact a company’s earnings and often its reputation. Concerning tort liability stemming from non-compliance it is in the company’s best interests to identify those risks and implement a plan to avoid them. When those risks come to fruition there needs to be a system to manage and prevent damage to the reputation and loss of monetary value to the company. Five years ago Alumina, Inc. was cited for discharging higher levels of PAH than were permitted. Through the use of preventive, detective, and corrective measures they can identify and manage these risks to reduce the probability of non-compliance of regulations in the future. The legal issues and the appropriate legal principles connected to this organization are displayed in Appendix A.
Preventive measures
      Alumina Inc. was in violation during a routine inspection involving negligence about five years ago and was charged with a punitive fine for corporate irresponsibility. The PAH concentrations were over the prescribed level in the test samples. Alumina Inc. was ordered to clean up the PAH by the EPA and it was confirmed that they corrected the issues and were in compliance. Another issue with a local resident threatened their good record stating that her daughter’s illness escalated from the contamination of water.
      To prevent Alumina Inc. from receiving another violation, it must remain in compliance with all laws. Regulatory risks may be identified and managed by preventive measures through the implementation of procedures and processes to self monitor PHA and other regulated substances to ensure compliance.
      Even though they have a good record, a public accusation was...