Alumina Inc Regulatory Risk Recommendations

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In this paper, I will explain how regulatory risks such as tort liability can be identified, and managed through preventive, detective, and corrective measures. I will also include recommendation that can lead Alumina in the right direction that can prevent or minimize costly litigations.

Alumina Inc, Maker, is a United States of America (USA) based company that operates in eight countries around the world. Alumina supplies automotive components and manufacture of packaging materials, bauxite mining, alumna refining, and aluminum smelting. The executive body is consists of four members, Roger Lloyd, the iron willed Chairman, Chris Blake, the chief operating officer, Diane Richards, the head of public relations, and Arthur Todd, the legal counsel.

The simulation focus on Alumina who had a lawsuit brought against the company five years ago, regarding violation of environmental discharge norms. Alumina was charged with tort liabilities that cause potential risks to the company. Kelly Bates is accusing the company of repeatedly contaminating the local water supply. Kelly believes that the contamination water is the proximate cause of her 10-year old daughter’s leukemia. The list of tort liabilities and regulatory risks identified and reviewed by Learning Team B involves non-compliance of regulations, defamation, negligence, breach of duty of care, and Freedom of Information Act (FOIA). These risks are compelling and relevant to current and prior liabilities.

Tort Law provides resources for a variety of injuries and provides remedies for them. There are three categories of tort, intentional, unintentional (negligence), and strict liability. Alumina falls under the unintentional tort commonly referred to as negligence. This actio...

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...losure of information that would harm foreign policy, privacy of individuals, proprietary interests of business, functioning of the government, and other important interest (Cheeseman, 2010).

To minimized risks involving litigations, top and lower-level management must remain vigilant of their business environments, and the rules, and regulations set by the different government agencies, which may affect their business types. Therefore, companies should (a) for example, align the regulation and laws with their ethical code of conduct within their companies and bylaw, (b) educate their personnel about proper procedures and the steps that could help minimize exposure, to risk that result in costly lawsuits. Failure to meet these standards mentioned could have significant impact that could taint their companies’ public image, as seen in Alumina Inc.
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