Minimizing Tort and Reguloatory Risk

Darnell Westbrook

May 26, 2010

Assignment Two

Law /531

Michael Tancredi

Alumina is a company regulated under the EPA (Environmental Protection Agency) therefore; it must be in compliance with environmental protection laws. A company who has been found in violation of the EPA can suffer harsh monetary fines that could force them into bankruptcy; there are also negative stereotypes and perceptions the public may have towards Alumina due to knowledge of violations and negligence. It is very important that Alumina (and companies alike) know exactly what the laws are, identify any risk we may have, and try to minimize the risk as much as possible.

The first thing is to identify all regulatory risk that are associated with Alumina. In order to gain control or fix a situation t first one must know that it is a problem. This is where being educated on exactly what the laws are very important. There should be a risk management team assembled within the company who are more educated on EPA guidelines, new regulations affecting business, new pollution reducing products, etc. Alumina may also want to hire a third party Risk Management Specialists to work with their risk management team to ensure that risk are identified and proper measures are taken to ensure that Alumina is within all federally issued regulations. In today’s society everything is becoming specialized, therefore, there may not be enough time to train someone within the corporation of all the nuisances of EPA regulations and compliance standards. This is would be a reason to outsource a risk management team.

One of the biggest risks associated with Alumina is the contamination of Lake Dira. This is a risk that can be managed effectively. Regulations and permits should be reviewed periodically to ensure compliance with the CWA (Clean Water Act) in relation to the current status of Aluminas facilities and toxic omissions. All employees also should be trained on EPA regulations and safety...