Running head: LAW531 - ASSIGNMENT 2
Recognizing and Minimizing Tort and Regulatory Risk
University of Phoenix
In today’s business environment, organizations must be actively engaged in developing, maintaining and following up on a preventive and corrective action plan that applies to the organization business model. Organizations are subject to contend with regulatory risks, such as tort liability on any given day. Organizations that fail to comply with local, state or federal governmental regulations will exposed the organization to regulatory risks that will impact the companies existing assets, earnings, and most often their reputation in the media. Organizations that allocate internal resources to identify regulatory risks and implement existing action plans may avoid the possibility of non-compliance of government regulation and tort liability action. Organization preventive measures provide the internal controls of the day to day business operations that reduce, limit and eliminate the organizations exposure to tort liability, fines and criminal penalties. A detail effective preventive measure plan will insure the organization’s best working practices are in place.
In the event that an organization have been identified with a regulatory government violation or a tort liability, the organization need to have a system in place to manage properly the sequence of events that will follow the claims identified. The ability of the organization to recognize regulatory risks will require the organization to identified and managed through the various preventive, detective and corrective measures through their organization plan. The plan should begi ...