Recognizing And Minimizing Tort And Regulatory Risk Essay

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Recognizing and Minimizing Tort and Regulatory Risk Introduction Tort part of an unwritten law of England in 1060th was adopted in United States federal courts after the American Revolution; during that time the ruling was officiated by the royals’ courts. During the 12th century the courts were awarding damages on battery cases, trespassing, negligence, defamation, and other wrongful acts. In the 21st century the same careless acts of the earlier centuries are still considered tort. Today work related tort, and medical malpractices are the common court litigations. United States tort cost averages a nine percent increase per year for the last 57 years. The continue increase trends of tort cost represents for business a red flag that needs to be analyzed. To decrease the spending on tort litigations business need to find ways to reduce the number of tort litigations, a reduction of litigations can be achieved by placing preventive, detective and corrective measurements to manage the regulatory risk. The purpose of this paper is to analyze how a business can recognize and minimize tort and regulatory risk. On this paper Alumina Business simulation case will be use to illustrate how this business manages accusations from EPA regarding environmental violations; perhaps the stringiest part of government business regulations, and negligence allegations from a local citizen (Kelly Bates) affected by Alumina Inc. environmental violations. Alumina Inc. Case Background A world aluminum maker, USA Alumina Inc. accounts 70% of the business in USA. Geographically on the border of Lake Dira in the state of Erehwon, Alumina Inc. bases business on automobile components, bauxite mining, alumina refining and aluminum melting. Alumina Inc. was reported to be on environmental violation for discharge of waste with PAH concentration about the limit. After being found in

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