This regulatory risk plan will recognize the most common torts and risks that are associated business regulation simulation that the learning teams of this course studied. This risk plan will also include how regulatory risks will be identified and analyzed through preventive, detective and corrective measures. Also, this risk plan will describe how specific measures are used to manage the particular risk. Therefore, here is the analytical regulatory risk plan that could eventually help any type of business during a dire time within their business. What is a Tort? Within the business law terminology, a tort is also alias to the term “wrong”.
According to Chapter Five of Business Law, “under tort law, an injured party can bring a civil lawsuit to seek compensation for wrong done to the party or to the party’s property” (Cheeseman, 2010). Within an everyday life, everyone is suing everyone, which is a prime example of tort and negligence being put to use on a daily basis. In the business regulation simulation, Alumina Inc. encountered many different risks and torts due to erroneous issues. For example, the horrific dismays and disagreement that the top level executives had with the suburban housewife led to issues in the media and the business aspect of Alumnia, Inc.
Common Torts and Risks associated to Businesses According to Cheeseman’s Chapter Five there are three different types of categories of torts that influence businesses. The three different categories of torts are intentional torts, unintentional torts, also known as negligence and strict liability torts. An example of intentional torts is the protection of someone’s privacy and reputation. When businesses intentionally lash out to hinder a person’s privacy and reputation, under the tort law, damages and monetary funds are subsequently owed to that private party.
Within the business law terminology, this example is known to be labeled as invasion of the right to privacy and defamation of character. Unintentional torts are when “a person is liable for harm that is the foreseeable consequence of his or her actions” (Cheeseman, 2010). In other words, unintentional torts are represented within businesses when negligence is being displayed within the business. The Alumina Inc. was accused of being tormentors of negligence by the suburban housewife due to the personal injuries that her offspring were inflicted to.
Finally, strict liability torts are example of businesses whose gains liability without fault. According to Cheesman’s Business Law “a participant in a covered activity will be held liable for any injuries caused by the activity, whether or not he or she was negligent” (Cheeseman, 2010). Regulatory Risks analyzed by Preventive, Detective and Corrective Measures Risks and Torts are associated to any type of business within the business world. However, this concise paragraph will analyze how regulatory risks will be identified by preventive, detective and corrective measures.
In order to identify risks on through preventive measures, business should create a department within the business that monitors torts and risks that would hold the business liable for any damages. On the other side, from a detective measures risks should be identified by that same department should be able to see liabilities within loophole contracts and tedious lawsuits from third parties. Finally, risks and torts should be identified via corrective measures by members of the department that are in charged of finding risks receive decisions made from court orders.
Specific Measures used to Avoid Risks and Torts A business creates different tactics and measures that are necessary in order to avoid risks and torts within their particular business. One particular measure that is essential to any business is the creation of a risk management department that monitors risks and torts that could hinder the business. The risk management department should contain detectives, lawyers, publicist and anyone else essential to monitor risks and torts within a business. Conclusion.
This risk management plan was written in order to create the best way to address different risks and torts that could hinder a business. Risks and torts are terrifying items that could tear a business apart. Therefore, it is important to understand risks and torts within business law to avoid lawsuits or court orders. Bibliography Cheeseman, H. R. (2010). Business Law: Legal environment, online commerce, business ethics, and international issues (7th ed. ). Upper Saddle River, NJ: Pearson Prentice Hall.