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    Legality of Risk Management

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    Topic: The Legality of Risk Management
    1) Assume the role of a chief executive officer.
    2) Research a legal case associated with risk management. The case could have occurred in your organization or be found in a literature review.
    3) Analyze the case.
    4) Identify the pertinent facts and the case's outcome, focusing on the
    Financial implications or consequences.
    5) Include a description on the existence of a standard of care, duty to meet the standard, failure to meet the standard, and damages that ensued.
    6) Provide the case's outcome.
    7) Answer the following questions:
    What would you do if you were in charge of the issue?
    What could the organization have done to avoid the event?
    What risk financing techniques could have been helpful in avoiding this event?
    What may the organization do to prevent the occurrence from happening again?

    872 words plus separate exec summary file

    © BrainMass Inc. brainmass.com June 4, 2020, 12:39 am ad1c9bdddf

    Solution Preview

    The solution is in the attached documents.

    The case selected for research involves a young man who agreed to participate in a
    clinical trial for a medication developed to treat Schizophrenia. The medication was developed
    by Astra Zeneca, who provided payment to the young man's physician, who gave the diagnosis
    and also enrolled the young man in the clinical trial. The twenty seven year old committed
    suicide roughly six months after being enrolled in the trial and beginning the medication. His
    mother subsequently sued the researchers, institution conducting the research and the
    pharmaceutical company. While a judge found the pharmaceutical company and the research
    institution not liable, under different circumstances. The mother settled with the researcher
    and claims that as the treating physician and in the dual role of primary investigator of the
    research, there was an inherent lack of objectivity and the diagnosis could have been made to
    further the investigator's research. She further claims her son did not possess sound judgment
    at the time he signed papers to participate in the trial.
    While the financial burden in this case is less substantial than in many similar cases, it
    could have been potentially much more severe. The $75,000 settlement to the mother, from
    the researcher and primary investigator is likely nothing more than a token gesture. The cost
    to the physician could have far greater implications, if the negative publicity affects the
    physician's private practice. Fewer patients mean less revenue and the possibility that the
    practice might eventually fail. In addition, the questionable dual role might make the
    institution's board of directors question the ethics of performing in both roles. If the physician
    is asked to step down, due to the lack of ethical consideration, an additional loss of income

    will ensue.
    The cost from a highly publicized trial has financial implications for both ...

    Solution Summary

    The legality of risk management is examined