Recognizing Tort Essay

950 WordsMar 22, 20094 Pages
Running head: Minimizing Tort and Regulatory Risk Week Two Assignment Recognizing and Minimizing Tort and Regulatory Risk LAW 531 - University of Phoenix Risks to the business must be identified early and as much as possible, before they become an issue. Regulatory risks are an example of risks that can be identified and managed before they occur, based upon the regulatory agency rules and precedence set in the judicial rulings. Tort liability is a key component to regulatory compliance, and mitigation of the risk involved with conducting business in the component area of choice. Due to the large risk factor, a Risk Reduction Plan (the plan) has become necessary. The plan will be installed and maintained by the Risk Reduction Team (the team). The plan is a living document, and is meant to be dynamically attributed to all business processes. It is vital that the plan stay up to date on regulatory compliance as well as legal proceedings that affect business processes of the company. No business is safe from tort liability. Every company distributes a product or service to a customer. When that customer uses the product or service, it is not under the pre-text of buyer beware (Jennings, 2006). This type of thinking is not occurring in the business world nor when the case gets to the court system. Regulatory agencies are available to ensure that compliance with rules and regulations are maintained. But keeping up to date with the regulations does not eliminate the liability involved. As the case study showed, the affected person(s) were not clients of the company (Alumina) but rather residents that were alleged to have contracted adverse effects of Alumina conducting business. (UoP, SIMULATIONS: Business Regulation Simulation , 2009) Identify and Manage Tort Liability Identifying the tort liability proactively is the ultimate goal for this plan.
Open Document