A related case of Toxic Torts occurred in East Anglia, where chemicals from a factory seeped into a dam (Barcelona Field Studies Centre, 2009).
The best risk management method is prevention. While Alumina's current situation is somewhat dire, the company can learn from its mistakes and attempt to prevent the same thing from occurring in the future. One measure that can be taken in this regard is to fully assess the current situation in terms of the amount of danger caused, the amount of people affected, and the mitigation measures necessary to eliminate the health risk. A cost analysis should also be conducted to quantify the financial risk, especially in the future (.
The risk of public image can be mitigated by taking the option of settlement via arbitration or mediation. Alumina's guilt and wrongdoing cannot be denied. Being subjected to a court battle that will probably be lost is both unnecessary and highly risky in terms of costs and loss of reputation. To save both, settlement is probably the best option. Indeed, the negative reports in the press regarding the company has caused damage enough.
The way forward is then to take corrective action followed by preventative action. Corrective action entails both legal and public actions. Legally, Alumina should settle the issue outside of court and admit its wrongdoing to EPA officials. The company should then implement disposal methods that comply with the EPA standards.
Publicly, Alumina should admit wrongdoing, but emphasize its corrective efforts for the future....
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