Mary Grace C. Viray
LAW/531
May 25, 2013
Professor Gregory Martin
In analyzing the tort violation that Alumina, Inc may have possibly violated, they may be looking at negligence tort. There was definitely a breach of duty but still needs to prove that there is a proximate legal cause of injury from the result of environmental non-compliance of Alumina to be considered a case of negligence. After the violation, the company should have developed Enterprise Risk Management Procedures to strategize the company’s activities and prevent a repeat of the violation. Is the sickness of Kelly Bates’ derived from the contaminated water that Alumina Inc emited? Although it has been corrected and the company …show more content…
was found compliant to the EPA regulations, the aftermath to the environment may come delayed.
Evidence can be use against Alumina by pulling the EPA violation five years ago. It could be contributory but not sufficient enough to establish wrongful conduct from the violator. There was a breach of duty when the company failed to protect the environment and people from getting harmed. To prove that it was the proximate legal cause of the disease, they have to present a medical evaluation report and have to establish the truth or validity that the symptoms can be traced back close to the account of when Alumina had the violation. If proven guilty of negligence, the acts of the management should be held liable for the tort committed. Based on this serious accusation and company threat, Alumina should maintain a proactive approach to litigation and it would be beneficial for the company to look at establishing a stringent Enterprise Risk Management procedures. The company must understand the organization as a whole, be able to identify the strategic goals. The management must commit to implement the ERM process. There is a need of ongoing cycle of identification, assessment, monitoring and reporting of possible risks to the management to make a well-informed decision to mitigate
the risk. Communication is mostly concentrated in the management but essential to be disseminated to the proper channels translated to the lower levels of the organization. A well-communicated, consistent, efficient risk management process becomes more essential to have a favorable outcome in having an effective ERM. A review and implementation of the policies and procedures is also detrimental to the health of the company to keep as a guideline for the organization. Last but not the least, training and education is a principal aspect to keep employees concurrent with their skills, knowledge, and abilities.
Establishing a good Enterprise Risk Management procedure is essential in the mitigation of potential risks and emerging challenges to the company. Alumina, Inc. failed to develop an ERM prior to the EPA violation. Alumina could still recover from the past as a learning experience and implement an effective ERM in the present to prevent future litigations.
Reference
N.A.. (2013). Enterprise Risk Management. Retrieved on 5/24/13. http://www.termpaperwarehouse.com.