Controlling Regulations

Controlling Regulatory Risks

Jonathan Michaud

LAW/531

5/2/2010

Mark Reed

Controlling Regulatory Risks

Regulatory and legislative compliance is a critical component for the success of any business. Dealing with regulatory agencies can be extremely trying and diverse depending on the nature of the business and which agencies may be responsible for monitoring and enforcing the regulations. Risks associated with the failure to comply with the regulations can affect a business’s existing assets and reputation. Tort liability can be an issue that may arise out of non-compliance of government regulations. It should be in the best interest of the business to make sure that there are funds available to identify those risks, and to implement action plans to avoid such risks. One of the most daunting, yet vital regulatory agencies policing American business is the Environmental Protection Agency (EPA). Environmental negligence can have a devastating impact on the communities around them. The environment, community, and the business are benefiting by the protection of government regulations that have been put into place. Although, it can be difficult to comply with some of these regulations, many businesses are embracing them.

Every business should have a system in place to effectively manage and control any financial or reputation damage to the business in an event that these risks may come into play. Businesses should actively seek out any changes that the EPA may foresee and be flexible to how each change should be treated. By being flexible and able to foresee any changes that are to come about can minimize any future exposure to any tort liabilities that may arise if non-compliance becomes an issue. Being able to examine the concepts of the regulatory law and the impact and risks that the regulatory environment has on the industry is something that every business should be constantly aware of to avoid any and all misfortunes. Management should focus on...