Alumina Inc: Minimizing Tort Liability Arising Out of Regulatory Risks

7.2 Describe how to carry out a risk assessment and risk management in line with policies and procedures

There can be many dilemmas for organizations that have serious regulatory issues. Organizations can be fined for even the smallest break in the regulations (Lester & Parnell, 2006). When there are major issues, imagine how high those fines may be. Not only may the fines be costly, but the cost of getting a company up to the necessary standards can also have a major effect. If the costs outweigh the profit, a company could potentially shut down.

Risk management is a process for identifying, assessing and prioritizing risks of different kinds. Once the risks are identified, the risk manager will create a plan to minimize or eliminate the impact of negative events. A variety of strategies is available, depending on the type of risk and the type of business. There are a number of risk management standards including those developed by the Project Management Institute the International Organization for Standardization the National Institute of Science and Technology and actuarial societies. Organizations uses different strategies in proper management of future events such as risk assumption, risk avoidance,

Throughout the years there have been an influx of regulatory failures referenced to the government as “Regulation Dilemma’s” (Mills, 2010, p.8). The U.S. Securities & Exchange Commission (SEC) and Minerals Management Service (MMS) are two companies that have a high volume of regulatory violations. The SEC’s financial crisis and the MMS’ oil spill in the Gulf of Mexico have caused the government agencies to address the issues with the regulatory programs (Mills, 2010).

Product liability law is noteworthy given the variety of defects covered, i.e. defects in design, manufacture, or warning, as well as the variety of types of liability ranging from strict liability to breach of warranty, negligence, or the battery type. given that the different theories of product liability provide or allow different types of defenses as well as damages, plaintiffs have flexibility when determining how to proceed with a

Managing risks means minimizing and, if possible, eliminating any situation that jeopardizes property or a person’s health, safety or emotional well-being. The Risk Management Chairman is responsible for assisting officers and chapter members in following all Risk Management Procedures and policies to minimize risks to an individual or property.

Ensure that products that leave our facilities are tested and comply with industry, regulatory and contractual requirements.

The law should compel all the manufacturers to abide by the safety and quality standards. Any manufacturer who is found culpable of violating these rules should face stiffer penalty including revocation of trading license. Moreover, all products must be tested against the quality and safety standards before they are released on the market.

The Risk Manager will be responsible for regular and systematic review of all event incident reports for the purpose of identifying, analyzing, evaluating exposures, and trends. If an undesirable exposure or trend is identified, the Risk Manager will develop recommendations for corrective action or refer issue to the appropriate committee/department chair/manager/director.

Many SOX related studies have indicated that significant costs were incurred by “managerial diversion.” This opportunity cost increased as managers diverted their attention to “designing, documenting and ensuring compliance with new internal controls” ( Ahmed, 2010). The following paragraphs explore how costly the overall SOX Act is for all the public companies to comply with it, since 2004; the key components of the direct SOX compliance costs; indirect costs associated with SOX Act; and SOX related costs specifically for small business and businesses with weak internal controls.

The plan also identifies that risk management staff education will also be performed periodically via declared Health and Safety representatives, incident reports, complete action plans, staff feedback, and meetings. They have also identified the required evaluation methods necessary to complete the risk plan implemented. The plan also lists associated documentation both external and internal that also have effect within the plan.

    TOMS has a set of manufacturing standards based on the International Labor Organization compliance standards for its manufacturing companies. They

In order to identify regulatory risk, changes in regulation must first be identified. Keeping up-to-date with regulatory changes is no simple task. Fortunately, there are a number of ways lawyers can help clients keep up with the changes:

Most manufacturers care about their consumers and subsequently, do not intentionally manufacture products that harm their users. However, injuries from defective products do occur, and they occur often. The United States Consumer Products Safety Commission (CPSC) estimates that in 2014, 78,906 product liability cases were filed in the US. Furthermore, product liability cases are second only to medical malpractice as having the highest median damage awards in all personal injury cases. Fortunately, the liability for these products and the injuries they cause lies on the individuals or companies individuals or companies responsible for manufacturing and distributing them. Product liability cases are often difficult, expensive, and time-consuming.

Regulatory authorities in general, fall into Zone C of Mendelow’s matrix, as discussed previously. They wield a high level of power and thus have the ability to massively effect the running of a business if they so wish to do so. Under normal circumstances these entities have a low level of interest in the everyday activities of a company. However the number of corporate scandals such as the LIBOR rate rigging, has drastically