Regulatory Risk Management Plan

Regulatory Risk Management Plan

Torts or faults are very costly in both time and expense to any business. As a way to combat these faults from affecting a business it is important that the proper steps are taken to mitigate risks. This plan will outline how regulatory risks can be identified and managed through the use of preventive, detective, and corrective measures. This plan will review common found torts and risks that can be found in businesses such as Alumina, Inc. and various other organizations.

Regulatory Risk Management

In the simulation regarding Alumina, Inc. the claims made by Kelley Bates was that as a result of the company’s negligence five years prior that her daughter contracted leukemia (University of Phoenix, n.d.). The allegation stems from an issue found by the Environmental Protection Agency (EPA) five years prior, that the contamination levels in the water surrounding the company were higher than allowed by standards. Alumina took corrective actions regarding the issues by making adjustments to the operations and held a clean standard from that point forward (University of Phoenix, n.d.). The best plan for Alumina, Inc. would have been to catch the issue before the EPA did. Preventive measures that should have been taken in this circumstance would have been for Alumina to be consistently checking water levels surrounding the factory to monitor levels and be proactive to the discoveries to ensure that they stay within regulated guidelines. Constant safety and operations inspections would also be another preventive measure to be checking the equipment and how it is operating to minimize liabilities regarding injury or pollution.

Regular testing and inspections are also detective measures that can identify issues prior to causing the business liabilities. Another crucial detective measure that any company can perform is quality control. This allows the company to inspect products for defects in the product, manufacturing,...