Regulatory Risks and Tort Liability

Regulatory Risks and Tort Liability

Dealing with tort liability has become day to day task for organization, and preventing tort risk has been the main priority to organization management. Limiting the exposure to tort liability is the daunting task for the management to create effective preventive measures. With strict government policy enforcement, Alumina and other organization need to be more careful about the current and future changes to policy and penalties including fines and indemnity. Following the government constant changing policies will be the most effective way to minimize the tort liabilities. Organizations and management face major threat from regulatory and tort liabilities risk. Organization cannot just ignore the breaking of law, it needs to prevent, immune, and make sure the mistake does not repeat in future. Organizations have been investing more resources such as money, labor time, and work force in order to avoid cruelty of the tort and risks. The very first and important step for organization is to create and implement the effective plan that will identify and minimize the tort liabilities and risks. Thus, the plan will require the measures that will minimize the tort liabilities, and those measures would be corrective, preventive measures for tort liabilities, and decisive measures to avoid risk.

Tort Liabilities and Risk Identification

The simulation showed the violation by Alumina Inc. Company was found violating the environment safety provision by discharging the materials in environment more than the regulation. Once the summons was issued for the company, the actions were taken quickly enough to correct the issues, and audit report of company was corrected. According to EPA, corporations and organization are bound to comply with the government’s goal for the environment and laws are created for company to follow in order to meet the regulation and obligation to environment (EPA, 2009). EPA research found that Alumina had...