Enterprise Risk Management Essay

1505 Words Jul 9th, 2011 7 Pages
Enterprise Risk Management The Non-Linear Pro salesman told the manager of Quick Takes Video that the editing system leased would allow the employees to edit material twice as fast after only a day and a half of set up and training. After all employees received the one-day training course, completed the video tutorial, and read the manual, problems with the equipment stopped production of a Quick Takes Video project. During an attempt to insert a CD, an employee cut her finger on a sharp edge of the poorly designed equipment. Two different types of torts arose in the Product Liability Video. One type, an intentional tort occurred as a result of the implied warrantee when the salesman described the benefits of the editing system. …show more content…
Everyone in the company needs training about federal, state, and local rules, and guidelines. Every employee possessing a vast knowledge of the compliance regulations will help minimize frivolous lawsuits, mediation, discrimination, and possibly the ultimate ruin of the organization. Even with a compliance program ensuring identification of potential threats and risks, understanding of the risk, proceeding with actions to ensure no repeats in breach of policy, keeping files of the results, and reviewing effectiveness of the actions taken to fix the problem corrective actions become necessary. Corrective actions could include suspensions without pay, reduction in rate or pay, or termination. The organizational heads must determine the severity of punishment for noncompliance. Management must ensure all employees understand that consequences are mandatory when noncompliance becomes an issue. Effective Compliance Oversight
Members of Team A noticed one major error made by the Nonlinear Pro representative. The Nonlinear Pro representative made unsubstantiated claims about the ease of learning the new system. After realizing the equipment was faulty a noncompliance issue arose. Many businesses face financial issues and operational disasters forcing the companies to require new legal demands and regulatory

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