Recognizing and Minimazing Tort and Regulatory Risk

Recognizing and Minimizing Tort and Regulatory Risk

Roberto Maldonado Sánchez

LAW/531PR Puerto Rican Business Law

April 6, 2015

Prof. Israel Camacho Alicea

Recognizing and Minimizing Tort and Regulatory Risk

The operating systems of diverse companies are prone to errors, which could cause harm to others. According to (Cheeseman, 2010), Tort law imposes a duty on persons and business agents intentionally or negligently not to injure others in society, based on this law an individual who is affected by the activities of another may sue and claim compensation for damage neglect and / or punitive damages.

Preventive Plan

Organizations need to have a preventive plan, to help minimize the effects of errors and in turn, avoid litigation, which only represents marginal costs to the organization. This plan must meet basic components, where prevention is the foundation of it. In order to anticipate possible errors, operational team must possess the necessary knowledge to detect where the operations can fail and how to avoid errors. A well educated employee, with full knowledge on the subject and with a clear view of goals is vital to the success of the plan. Training in error prevention is included in the plan, through seminars and continuing education workshops.

Another component is the timely detection of any errors that impact the organization, its employees, customers and the community, among other possible involved. The early detection of faults in the system allows the corrective plan to be applied in haste and minimize the effects. Efficient detection is achieved with the use of technology, continuous or periodic monitoring of operations allows the detection of any failure in the process. This component also acts with regulatory agencies. The detection of an error in operations, committing any federal statute or regulation must be addressed with priority. Mitigate damage an errors represents a marginal cost of large-scale...