Enterprise Risk Management Essay

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Enterprise Risk Management Clea McKinney, Veronica Mitchell, Kathleen Mohr, Tamara Patrick LAW 531 November 7, 2011 Bradley Romig Enterprise Risk Management Introduction Potential Risks Potential risks are realized due to a series of dissatisfactions in a product or service. A few of the potential risks for Non-Linear Pro are the product has taken 15% longer to realize the inability to set up, it is physically dangerous, and it is an inferior product that cannot live up to the expectations of the purchaser/lease. Quick Takes Video, took possession of an editing system with the understanding the new system would be time efficient by “cutting the time on every job in half”. The information from the sales department was misrepresented; the fact the videos had to be digitalized before the editing system could be used was omitted. This would be the most time consuming process before the product could be introduced. The drive had a bad designed. The manual took great care to point out to the reader the drive need to be in place. There was no caution expressed or implied there could be sharp, jagged edges and when the user ensured the drive was in place she was cut. This caused more time out of the work process to care for her injury. Failure to warn of these dangerous propensities is a defect that will support a strict liability action. A person injured by a defective product may bring an action for negligence against the negligent party (Cheeseman, 2010). Lastly, the product did not have the proper amount of memory required to complete the task to which it was intended. It was also stated verbally the product would have Quick Takes Video up and running in a day and a half and would increase their productivity twice over. Tort Violations The product liability video revealed several potential tort violations. The violations fall under

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