Recognizing and Minimizing Tort and Regulatory Risk Plan

Recognizing and Minimizing Tort and Regulatory Risk Plan

Companies in today’s environment must be aggressively involved in developing, maintaining and following up on preventive and corrective action plans that apply within organizations. Work places are challenged with regulatory risks, such as tort liability to include intentional torts, negligence, and strict liability. Intentional torts are the harms that result when parties commit intentional acts such as assault and battery or defamation. Negligence “is the failure to use reasonable care, that the doing of something which a reasonably prudent person would not do, or the failure to do something which a reasonably prudent person would do under like circumstances (Lectric Law Library, n.d.). “Strict liability is the legal responsibility for damages, or injury, even if the person found strictly liable was not at fault or negligent, most commonly associated with defectively manufactured products.” Companies that chose not to comply with local, state or federal government regulations will expose the organization to regulatory risks that will effect the company’s reputation in the local community and media as well as existing assets, and earnings. In the context of tort liability arising out of non-compliance of government regulations, it is in every company’s interest to allocate resources to identify those risks, and to implement action plans to avoid such risks.

In the event those risks do materialize, the company needs to have system in place to manage properly and contain monetary and the reputational loss to the company. Additionally, companies will also benefit by anticipating what regulatory changes are upcoming so they are able to adjust their business practices accordingly, thereby minimizing the exposure to tort liability arising out of non-compliance of regulations. Organizations that allocate internal resources to identify regulatory risks and perform a quality assurance check...