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Recognizing and Minimizing Tort and Regulatory Risk Plan

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Recognizing and Minimizing Tort and Regulatory Risk Plan

Resources: Business Regulation Simulation

Write a plan using a company such as Alumina, Inc., explaining how regulatory risks may be identified and managed through preventive, detective, and corrective measures.

Identify common torts and risks found in the simulation and in this week's readings.

Describe specific measures to manage each risk.

Write a plan, and include your table as an attachment to your plan.

Format your plan consistent with APA guidelines.

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Solution Preview

A few years ago, the company Alumina was cited in a violation of expectable environmental discharge norms by the Environmental Protection Agency (EPA). Recently, Alumina found itself as a subject of negative publicity by local newspapers and was threatened with a lawsuit by a citizen of Erehwon. Alumina's managers and board of directors need to become more educated, more pro-active and position the company and its employees to be at less risk for non-compliance with industry-wide regulations, thus reducing the tort risk exposure for Alumina.


Regulatory compliance is mandatory. Management needs a higher level of awareness and knowledge of federal and state laws in respect to the Aluminum industry and strategies of how to keep Alumina in compliance with such laws to include provisions of the Clean Water Act (University of Phoenix, 2002). Training will occur bi-annually in an effort to stay informed of amendments to environmental and regulatory laws. Legal counsel (Arthur Todd) in addition to educating himself and keeping abreast of the laws will be the primary trainer, training relevant staff based on regulatory proceedings in regard to solid and hazardous water and management of such, so that the management can then train their employees. In addition, staff training will include identification of common torts and associated individual and company liability risks. In addition, a positive image must be upheld with the community through open disclosure of disposal practices. Management, under the direction of the head of Public Relations (Diane Richards) will take a role in assisting the company in upholding the dignity of Alumina.

Common Torts, Risks, and Management for Minimization

The three categories of torts are unintentional, intentional, and strict liability (Cheeseman, 2010, pg. 75). Negligence, a tort which falls under unintentional torts, describes what Alumina found itself guilty of five years ago when the PAH concentration in test samples was above the allowed limit (University of Phoenix, 2002). Alumina was at risk due to negligence. To limit negligence, ...

Solution Summary

This is a APA formatted paper explaining how regulatory risks may be identified and managed through preventive, detective, and corrective measures.