Regulatory Risk Plan Essay

618 Words Jul 3rd, 2011 3 Pages
Recognizing and Minimizing Tort and Regulatory Risk Plan In this day and age and especially in this economy, the laws and regulations carry severe penalties, fines, damages and in some cases jail time. Therefore companies like Alumnia should be aware of current compliance of regulations, that way they can adjust their business practices accordingly and minimize exposure to tort liabilities as a result of not complying with regulations. Five years ago the EPA conducted a routine compliance evaluation inspection of Alumnia; during the inspection Alumnia was found to be in violation because their PAHs were above the prescribed limit, although this violation was corrected (UOP, Business Simulation, 2010). Although Alumnia had maintained …show more content…
In terms of media outlets making false accusations, companies should be sure to have all of their documentation in order to defend their record against these types of accusations and at the same time demand that the media retract their statements, being they had no proof to base those allegations to begin with.
Kelly Bates implies causation, because she feels as a result of the lake being contaminated five years ago, is the reason her ten year old daughter was diagnosed with leukemia and therefore feels Alumnia is to blame, which means that Alumnia would have contend with a potential multi-million dollar lawsuit.
A lawsuit would be costly not only for Kelly Bates but Alumnia as well. It is important that when companies find themselves confronted with these situations they sit and look at all of their options, the best choice would be to consider the option of arbitration in resolving these types of disputes, which would save the company time and money and possibly preserve their reputation in the process.
In order for Alumnia and companies like it to minimize tort and regulatory risk they should adopt the EPA Incentive, where they do independent site evaluations, this way they can ensure that they are in compliance with EPA’s standards levels of allowable discharge of PAHs into the lake waters. By

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