University of Phoenix
Buisness Law/ 531
June 10, 2010
Proposed actions a company may take to avoid tort liability and litigation are vital to organizations. Proposed actions a company may take to avoid product liability risk may be a way out of liability issues. Assessing methods for managing legal risk arising from domestic and international regulatory matters is the best way to beat business torts. an integral aspect of a business liability practice is to take ongoing proactive measures through direct collaboration to avoid lawsuits before they are filed. Seeking advice from government authorities, specialists and risk-management consultants is a technique buinsess should use. It is in every company’s business interest to allocate resources to identify risks and avoid descrepancies within the buisness (Parchomovsky, 2008).
In order to develop methods to reduce or eliminate torts, risks need to be identified and steps need to be taken. Proposing actions for a company to avoid tort liability and litigation is a way to keep ahead of the game. A company may take actions to avoid product liability risk such as; identifying risk, risk management, analysis and risk control to avoid torts. Assessing methods for managing legal risk arising from domestic and international regulatory matters is vital.Employing risk and management principles will not always prevent a businesses from being sued or from suffering loss but financial burdens can be significantly reduced. Identifying Risk
An integral aspect of a business liability practice is to take ongoing proactive measures through direct collaboration to avoid lawsuits before they are ever filed. Not all companies understand how to completely guard themselves of outside entities that have ill will and malice intent therefore it is important to completely understand how to handle these circumstances. Such risks have an impact on a company’s existing assets, earnings, and often, reputation. In the context of tort liability arising out of noncompliance of government regulations, it is in every company’s business interest to allocate resources to identify those risks, and to implement action plans to avoid such risks. Assessing methods for managing legal risk arising from of domestic and international regulatory matters (Wilson, 2009).
Regulatory risks and tort liability are nothing new to companies within the business world of todays’ society. Business members should be aware of specific goals, business needs, economics and the impact of potential liability as well as managing risk and risks associated with the failure to comply with a whole host of governmental regulations. In the event those risks do develop, the company needs to have system in place to properly manage and contain monetary and repetitional loss to the company. Additionally, companies will also benefit by anticipating what regulatory changes are upcoming instead to adjust the business practices accordingly, thereby minimizing the exposure to tort liability arising out of noncompliance of regulations (Wilson, 2009). Risk Management
This may be as simple as continuing to operate as usual or as complicated as restructuring or abolishing an entire department. Risk IdentificationThe first step in the risk management process is to identify all potential losses facing a municipality. Risk identification is an on going process that changes with each new situation.Risk identification, or exposure identification, requires the development of an inventory of all municipal operations, knowledge of the potential liabilities that may be imposed by either statute or common law, and knowledge of the worth of all municipal assets and sources of revenue. This step must include an evaluation of all potential events that might adversely affect the finances of a municipality. Contracts should be reviewed thoroughly, before being signed, to ensure that the...