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Recognizing and Minimizing Tort & Regulatory Risk Plan

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Recognizing and Minimizing Tort & Regulatory Risk Plan

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  • Jan. 22, 2010
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Recognizing and Minimizing Tort & Regulatory Risk Plan
The purpose of the Recognizing and Minimizing Tort and Regulatory Risk Plan to explain how regulatory risks and common torts describe specific measures on how an organization can manage and minimize each individual risk. The preventive, detective, and corrective measures for each are explained below. The situation in the Business Regulation Simulation is that Alumina Inc. was involved in some regulatory issues and Alumina Inc. social responsibility as a result of hazardous waste. University of Phoenix simulation states, “Environmental regulations is perhaps the most stringent area of government regulation of business” (Business Regulation Simulation). Alumina Inc. is a four billion aluminum maker that operates in eight countries around the world based with 70% from the USA. Alumina Inc. interest includes interest in automotive components, manufacture of packaging materials, bauxite mining, alumina refining and alumina smelting. The location mentioned in the simulation is around Lake Dira in the state of Erehwon Region 6 of the Environmental Protection Act (Business Regulation Simulation). Alumina Inc. is now being accused of contaminating the water in Lake Dira with carcinogenic effluents. These contaminations lead to a multimillion dollar lawsuit against Alumina Inc. by Kelly Bates a local resident who believes that her ten year old daughter received leukemia due to Alumina Inc. neglect. This incident was the only environmental regulation incident that Alumina Inc. has ever had and the company has worked hard to keep a good environmental regulation report (Business Regulation Simulation). The Environment Protection Act is a federal agency responsibility for enforcement of environmental laws at the federal level (Jennings, 2006).

Alumina Inc. was subject to torts. The Webster’s dictionary defines tort as “a wrongful act other than a breach of contract for which relief may be obtained in the form of...