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Tort Risk Prevention Through Erm

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Tort Risk Prevention through ERM Jaime Rodriguez LAWP/531 May 25, 2013 Gregory Martin Tort Risk Prevention through ERM The business regulation simulation proved to have a variety of potential tort risks in the exercise. Alumina Inc. had the misfortune of being caught with a violation by the EPA and failure to have appropriate measures in place led to the allegations from Kelly Bates. Although the company corrected the problem, it was not clear what steps Alumina Inc. continued to take after the incident occurred. Following the seven steps as defined by Tony Harb would provide Alumina Inc with a structured model to follow and to manage their risk with greater efficiency. Tort Violations The initial violation that Alumina Inc. was found guilty of was having a discharge that was above the standards set by the Environmental Protection Agency (EPA). With Alumina Inc. being situated in proximity to Lake Dira, they need to have stringent policies in place to ensure that any discharge from their plant would not exceed the maximum amount allowed by the EPA. Failing to maintain this standard has resulted in negligence on their part regardless of whether or not they addressed the problem in a prompt manner. Although the issue was corrected quickly, the damages continued further down the road and exposed the corporation to the potential for lawsuits against the corporation. As shown in the exercise, even after disproving Kelly Bate’s accusations that Alumina Inc. was continuing to contaminate Lake Dira, Alumina was unable to sue her for defamation of character. Because Alumina Inc. had an issue in the past, it can be argues that Kelly Bate’s made the accusation in good faith and believed that Alumina Inc. was responsible for the elevated PAH

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