Tort Liability

Introduction

All businesses around the world face regulatory risks. Generally where there is a law in place, there is also risk of that law being broken. All businesses are required to abide by certain laws, which means there is a risk of them breaking those laws, whether they realize it or not. Since the downfall of Enron and other companies, more and more businesses are being watched even closer by the organizations enforcing the laws. It is especially important for businesses to realize this and take action to detect, correct, and prevent regulatory risks.   In the paragraphs below Julie Nelson, a student at the University of Phoenix, will use Tort Liability as an example of regulatory risks that businesses face.   Julie will explain how tort liability can be identified and managed through detective, corrective and preventative measures. Common torts and other regulatory risks will be identified along with specific measures to manage those risks.
Identify and Manage Tort Liability

Not everyone in an organization can be an expert on existing laws that need to be followed. However, organizations can have departments in place specifically to identify laws that need to followed and push that information out to the rest of the company with suggestions on how to follow them.   Many organizations not only have a law department, but they also have compliance department that helps to ensure these laws are being followed. Compliance Groups typically review policies and procedures on a regular basis to ensure they synchronize with regulatory requirements. They conduct assessments to determine whether people are actually following policies. A compliance department is a good way to identify where there are issues, correct the issues and prevent them from happening again. Not all companies are large enough to have entire departments dedicated to this work. However, all companies should make an effort to monitor these risks in one way or another.
Common torts and other...