Recognizing and Minimizing Tort and Regulatory Risk
Alumina Inc. is a $4 billion aluminum maker operating in eight countries around the world. Located on Lake Dira, Alumina has business interests in automotive components, and manufacture packaging materials, alumina refining, and aluminum smelting (University of Phoenix, 2010). Alumina Inc. received allegations of environmental damages. This plan will manage and identify preventive, detective, and corrective measures to manage regulatory risks.
Tort is defined as a wrong by another to a person or business as negligence is defined as the omission to do something that a reasonable person would do or doing something a reasonable person would not do (Cheeseman, 2010). An evaluation was conducted by the Environmental Protection Agency (EPA) and findings showed high levels of polycyclic aromatic hydrocarbons (PAH). This was Alumina’s first instance of non-compliance under the Clean Water Act. This act regulates discharges of pollutants into waters (Cheeseman, 2010). Alumina immediately corrected the problem and was again in compliance.
Kelly Bates, a resident of Erehwon, accused Alumina of repeatedly contaminating the waters of Lake Dira with carcinogenic effluents and alleged the consumption of the contaminated water is the cause of her daughter’s leukemia (University of Phoenix, 2010). To refute the allegations, Alumina conducts an independent site study to check for any new violations. The site study reports the PAH levels are lower than required thus refuting the allegation that Alumina is polluting the water.
The Freedom of Information Act allows citizens to request information related to federal agencies and corporations. However, withholding information that qualifies as confidential business information, you are not jeopardizing the company’s position (University of Phoenix, 2010). Alumina released a partial report that shows compliance with the EPA. This report proves that Alumina has not continuously... [continues]

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