Risk And Tort Management Essay

1515 words - 7 pages

RUNNING HEAD: TORT AND REGULATORY RISK

Recognizing and Minimizing Tort and Regulatory Risks Paper LAW 531/Business Law
02/22/2010

Introduction
In today’s business environment organizations have to deal with regulatory risks and tort liability on a daily basis. Organizations that do not comply with the state and federal regulations expose themselves to fines, tort liability and criminal penalties. The cost of failure to comply is not limited to fines and legal fees but also the loss of reputation and other tort liability. An organization must develop ways to prevent, detect, correct and manage risk and tort. Organizations that dedicate funds and resources to the management of these ...view middle of the document...

A local resident Kelly Bates claims this negligent tort lead to her daughter developing leukemia (University of Phoenix, 2009). Alumina could have prevented negligent tort if a compliance team had been self testing the water for PAH levels.
Detection and Management
Prevention is the ideal path to avoiding penalties of tort liability and regulatory risks. Unfortunately, risks cannot always be avoided. Even with the best compliance team, violations can accidentally occur. Early detection and management of these risks should be the second step in a plan to reduce regulation risks and tort liability. Employees should sign accountability and compliance documents. These documents should require employees to report any violations they encounter and be held responsible if they fail to do so. Employees are familiar with the specific aspects of the jobs they perform; they have the best vantage point to detect any malfunctions or errors that lead to violations. This will minimize the tort liability and penalties.
Product liability affects all organizations that manufacture a product. Product liability attempts to lessen the losses of a consumer by requiring a manufacturer or their insurer to pay for a defective product and the damages sustained from it (Jennings, 2006 pg 408). To detect product liability early, an organization should test random samples of their products. Random sampling would detect if an irregularity was occurring during the manufacturing process. If an irregularity is detected they would know the time frame, in which the irregularity first occurred, an estimated number of products affected and a forecast of the costs of liability of the products if any were sent to market.
Product liability and violation of state and federal environmental regulations are not the only areas where an organization needs to detect and manage risk. All forms of communication are high risk areas for many different torts and regulations. Advertisements and warranties are regulated by the Federal Trade Commission (FTC). The FTC mandates that all advertisements and warranties are accurate to what they state (Jennings, 2006 pg 414). If an advertisement claims that prices are 50% off, they must be half off the original price of that product and not half off of an inflated price. Ensuring that all advertisements and warranties are precisely written to state only what the manufacturer is willing to do will limit liability cases.
All statements released by a company should be carefully examined prior to releasing the statements. Facts listed in any statements should be verified for truthfulness before being released to the public especially if they pertain to other organizations or individuals. If statements are not verified for truthfulness, an organization can be accountable for defamation. Defamation is untrue statements written by one party concerning another party that is made with malice and intent to harm (Jennings, 2006 pgs 373-375). In the case,...

Other Papers Like Risk and Tort Management

Recognizing and Minimizing Tort and Regulatory Risk Plan

628 words - 3 pages Recognizing and Minimizing Tort and Regulatory Risk Plan Environmental Regulation is perhaps the most stringent area of government’s regulation in business. The government imposes great technology investment demands on the industry for regulatory compliance. One single act of irresponsibility can cost businesses greatly or be forced to close (Business Regulation Simulation, 2009). It is important to identify, manage, and correct torts

Risk, Quality and Performance Management Essay

958 words - 4 pages | | |Risk ,Quality and Performance Management | |Their role in Healthcare

Inventory Management and Risk Pooling

2739 words - 11 pages Question 17: Chapter 2 Inventory Management and Risk Pooling KLF Electronics is an American manufacturer of electronic equipment. The company has a single manufacturing facility in San Jose, California. KLF Electronics distributes its products through five regional warehouses located in Atlanta, Boston, Chicago, Dallas, and Los Angeles. In the current distribution system, the United States is partitioned into five major markets, each of which

QASCO's Health, Safety Management, And Risk Management Analysis

2776 words - 12 pages for making the answer of the asked question clear and adequate. The aspect of health and safety management will be discussed which are used extensively by large manufacturing organizations; also in various areas of government and business as well including public health, occupational safety, hospitals, and agencies regulating these industries. Risk management and risk assessment are also part of this discussion because of the connectedness with

Overview of Risk and Quality Management in Health Care Worksheet

589 words - 3 pages University of Phoenix Material Overview of Risk Management and Quality Management in Health Care Worksheet The purpose of this assignment is to gain a broad perspective of risk management and quality management as applicable to all health care organizations, rather than focusing on a specific segment of the health care industry. Conduct research on the health care disciplines of risk management and quality management and

Risk Management: Role in Justice and Security Organizations

720 words - 3 pages Risk Management: Role in Justice and Security Organizations Introduction Risk, as it applies to justice and security organizations means “the uncertainty of financial loss, the variations between actual and expected results, or the probability that a loss has occurred or will occur” (Broder, 2006, p. 3). Businesses and organizations all across the country have risk management programs in place to help minimize losses. Risk most often is

Automation of Risk Management to Reduce Cost and Improve Accuracy

1006 words - 5 pages Automation of risk management to reduce cost and improve accuracy Introduction Network Centric view of compliance that only addresses Discovery and Reporting functions of the Risk Management Life Cycle and does not address • Prioritization of Assets • Assessment • Remediation • Validation With the advent of the “Application Risk Dashboard”, IT Security has implemented a variety of operational and security compliance profiles to

Overview of Risk Management and Quality Management in Health Care Worksheet

729 words - 3 pages ------------------------------------------------- University of Phoenix Material Overview of Risk Management and Quality Management in Health Care Worksheet * The purpose of this assignment is to gain a broad perspective of risk management and quality management as applicable to all health care organizations, rather than focusing on a specific segment of the health care industry. * * Conduct research on the health care

Importance of Media in Risk Reduction and Management in Southern Africa

2921 words - 12 pages Q; Examine the significance of media in disaster risk reduction and disaster management in Southern Africa. In recent years a larger number of communities have had to bear the adverse effectsof hazards .The Southern part of Africa which is the study area of this script has experienced more frequent disasters most significantly droughts ,earthquakes ,fires and floods to mention but just a few.The media has however, intriguingly pulled an

Consumer Credit Scheme and Its Risk Management of Different Commercial Banks in Bangladesh: Implications for Ific Bank Limited Bangladesh

3244 words - 13 pages CONSUMER CREDIT SCHEME AND ITS RISK MANAGEMENT OF DIFFERENT COMMERCIAL BANKS IN BANGLADESH: IMPLICATIONS FOR IFIC BANK LIMITED BANGLADESH 1. INTRODUCTION AND BACKGROUND Credit is the means of investment made by the bank to the entrepreneurs and business community. Alternatively this is the way of channeling fund to the deficit units where various risks and uncertainties are involved. Therefore every decision on credit matter should be taken

Erm Paper

1629 words - 7 pages identify potential tort risks, apply Harb’s 7-step risk management process to the main tort violation to mitigate the risk, and discuss when it is time to involve legal counsel. Potential Tort Risks After reviewing the product liability video Team A found there were a number of torts violations, we will discuss intentional torts, negligence, product liability. Intentional Torts According to Cheeseman (2010) an intentional tort is, “a category

Related Essays

Tort And Regulatory Risk Essay

742 words - 3 pages Recognizing and Minimizing Tort and Regulatory Risk Managing regulatory risks such as tort liability can be managed through preventative detective and corrective measures. The goal of this management plan is to prevent extensive losses, environmental and commercial, preserve the image of Alumina and abide by the important environmental statutes. The strategies include transferring the risk to another party, reducing the negative effect of the

Tort And Regulatory Risk Plan Essay

1679 words - 7 pages There are many risks for a company in the legal realm and it is important for them to minimize their tort and regulatory risks. A company should have a risk plan in place that can help them succeed. This plan can be a continuously changing plan depending on needed improvements on the plan. A risk plan can be developed easily when you look at the Alumina Inc. case as an example. A company such as Alumina can manage their risks through three basic

Recognizing And Minimizing Tort And Regulatory Risk

963 words - 4 pages Week Two - Recognizing and Minimizing Tort and Regulatory Risk It is extremely important to identify and manage possible tort liabilities for a company. There are ways to manage risks effectively but there must be proactive methods taken by the company. Common torts that were covered in our collaboration that could have been prevented or minimized will be addressed below. The textbook describes a company that disposed of

Recognizing And Minimizing Tort And Regulatory Risk

957 words - 4 pages Recognizing and Minimizing Tort and Regulatory Risk Social responsibility with the responsibility to the environment, are some of the critical points that involve the development and evolution of a company. The acceptation brand by customers and compliance with the standards set by the same is as it were the hallmark of growth from this. You cannot pretend to create a business if not willing to care for those around them, as this involves