Tort and Regulatory Risks
This paper will address preventative, detective, and corrective measures for a company to manage regulatory risks. We will also review common business torts that occur in many businesses today. According to Jennings: Tort comes from the Latin term tortus, which means “crooked, dubious, twisted.” Torts are civil wrongs, actions that are not straight but twisted. This paper will also describe specific measures to manage torts and other regulatory risks that are identified in business practices. The sheer volume of regulations and complexity of the international regulatory environment have made the management of regulatory risk one of the most pressing concerns for global businesses ahead of natural disasters, terrorism and other operating risks, according to a new global survey of senior executives conducted by the Economist Intelligence Unit (EIU) and co-sponsored by The ACE Group of Companies (NYSE:ACE) (Managing Regulatory Risk Tops List of Concerns for Today's Risk Managers; Burden Expected to Increase, According to ACE, 2009). One way that businesses can prevent instances like alumina from happening is to train their employees and make sure they are up with all the regulations enforced by the government. Preventative measures will allow businesses to limit the number of torts that are filed against the company. Alumina had a good reputation with the EPA and was operating according to standards. When the company detected that there was an issue they resolved the problem and brought their company back to regulating standards. Even though the company has a good reputation they are still subject to torts. The company took action and corrected the spill that happened. Although accidents happen it is still critical to maintain a good reputation with the community. The previous lawsuits and complains that were brought about the company pose risks to the company. Regulatory risks are defamation, First Amendment, and Freedom of Information...
References: Jennings, Marianne Moody (2006). Business: Its Legal, Ethical, and Global Environment. Florence, Kentucky: Cengage Publishing.
"Managing Regulatory Risk Tops List of Concerns for Today 's Risk Managers; Burden Expected to Increase, According to ACE". Business Wire. FindArticles.com. 16 Feb, 2009. http://findarticles.com/p/articles/mi_m0EIN/is_2008_Nov_3/ai_n30958565
“Companies Cite Advantages of Effective Regulatory Risk Management”. Towers Perrin. Towersperrin.com. Oct, 2008. http://www.towersperrin.com/tp/showdctmdoc.jsp?country
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