Regulatory Risk Management

REGULATORY RISK MANAGEMENT

REGULATORY RISK MANAGEMENT

Raj Krishnan

University of Phoenix

Abstract

This paper will discuss the different kinds of Torts and other regulatory risks that Alumina can face. It will explain how regulatory risks such as tort liability can be identified and managed through preventive, detective, and corrective measures. A clear plan would be outlined to identify common torts and other regulatory risks. The plan will also describe specific measures to manage each individual risk.

Regulatory Risk Management

Regulatory risk management is one of the most important areas for any business to succeed. To tackle any torts or other regulatory risks a proper identification, prevention and corrective process needs to be outlined. “A tort is an interference with someone or with someone’s property that results in injury to that person or to that person’s property.” (Jennings, 2006).

Kinds of Tort

“There are three types of tort liability: intentional torts, negligence, and strict tort liability.” (Jennings, 2006). The biggest problem in any business is caused because of negligence tort. Alumina complied with EPA regulations after a incident of PAH in water. This is a perfect example of negligence tort. If Alumina would try to investigate privately on Ms. Bates, this could cause an intentional tort of defamation.

Team Discussion Table

High levels of PAH in the water 5 Years back Negligence Tort

Withholding any information Under Freedom Of Information Act the company cannot withhold any information

Private investigation of Ms. Bates Invasion of Privacy

Using third part mediation provides lower costs and allows both sides to win. The results can be kept private minimizing the company’s negative publicity Arbitration

Negligence Tort

Negligence tort costs millions of dollars each year for any business. The most important requirement to mitigate this kind of tort is put in place a well defined catastrophe prevention...