Recognizing and Minimizing Tort & Regulatory Risk Plan

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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 damages or an injunction” (Merriam-Webster Online dictionary, 2008). The company took action to deal with their failure to comply with the Environmental Protection Act. Although the accident did happen it, was still very important for Alumina Inc. to repair and remain in a respectful light in the community. Alumina Inc. should be aware of the known risks that exist within the organization that will affect the health and safety of the workforce environment and the community. Learning Team A reviewed and identified the following regulatory risks. The list of tort and regulatory risks are Clean Water Act, Clean Air Act, Toxic Control Acts, Freedom of Information Act, Confidentiality of Business, Defamation, Invasion of Privacy, Strict Liability, and Negligence. The first key factor in the simulation is a set of regulations that all work together, the federal government places regulations on the emissions in various water sources, permissible substances in the air and the use of solid waste and disposal. Alumina Inc. violated all three of these regulations thus resulting in contaminants releasing into the air and soil, which will also affect the water. The swift cleaning of the spill was a corrective measure in which Alumina needs to review all available industry standards. Alumina should conduct random surveys on a quarterly basis to ensure compliance with all EPA standards. This will allow Alumina Inc. to address potential issues in an effective, timely manner.

The second key factor in the simulation is in regard to the second key factor in the simulation is in regard to the Freedom of Information Act states that a citizen can request information related federal agencies and corporations among others (Jennings,2006). This factor was used when Bates requested to see the environmental audit report. Alumina responded by allowing partial release of the environmental audit report under Exemption 4 of the Freedom of Information Act Confidentiality of Business. Alumina...
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