The Seven-Step Process of Environmental Risk Management with Negligence

Topics: Management, Risk management, Tort Pages: 4 (1262 words) Published: June 10, 2012
The Seven-Step Process of Environmental Risk Management with Negligence

In reviewing the simulation one major tort violation identified was the claim of negligence by Alumina, Inc. As with any successful negligence case there are primary elements, which include proof that: 1) there was wrongdoing on the part of the defendant, or 2) the defendant failed to take reasonable steps to prevent harm to others (Thompson, p. 31). Like other environmental tort cases, EPA violations or state issued permits may be sufficient to establish wrongful conduct of the defendant (Thompson, p. 31). When it is possible that there is validity to a claim of negligence in either case, it is necessary to look at the tort violation from a risk management perspective.

Enterprise risk management (ERM) is a systematic approach to analyzing and addressing the risk (,e.g., negligence claim) to the organization and implementation of a strategy to minimize harm to the organization (Harb, 2008). There are seven steps to mitigate the business risk associated with negligence in the simulation. The seven steps, also identified as key elements of a successful ERM, include: 1) management commitment, 2) communication and consultation, 3) policies and procedures, 4) training and education, 5) effective and efficient framework, 6) risk management is applied in practice, and 7) ongoing monitoring and review. This section includes discussion on how Alumina, Inc. functioned during this issue and how they could revise their practices in the future to safeguard against Future negligence claims

In looking at future negligence claims, Alumina, Inc. must maintain a proactive approach to litigation. In other words, from this point forward it would be best to look at organizational practices as if they have the potential to lead to litigation and use this information as tool to ensure that appropriate policies, procedures, and practices are in place and followed appropriately. This would include...
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