Riordan Enterprise Risk Management Plan
Riordan Manufacturing is a Fortune 1000 company that specializes in the plastic injection molding industry. They are an international company with facilities in California, Georgia, Michigan, and China. Their products include beverage containers, plastic fan parts, and custom plastic parts. Riordan prides themselves on their industry leading research and development (University of Phoenix, 2009).
The following Enterprise Risk Management (ERM) plan was developed for Riordan Industries, Inc. and its subsidiaries. The goal of this plan is to help mitigate any legal liability on the part of Riordan by implementing the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework (Jennings, 2006).
Alternative Dispute Resolution
Alternative Dispute Resolution is a way of resolving differences outside of the courtroom. This includes anything from informal negotiations, to formal written arbitration (Jennings, 2006). Currently, Riordan keeps an attorney on retainer but does not have a dispute resolution in process, thus if a conflict were to escalate, they would not have a resolution plan in process. It is in Riordan’s best interest to have a mediation process in place to help settle disputes. The reasoning is mediation is cheaper than other dispute resolution methods, especially litigation, and it protects the confidentiality of the parties involved (Peters and Mastin, 2007). Riordan’s internal legal council will work directly with the law firm on retainer to develop a mediation process with varying levels of triggers based on levels of risk. In doing so, Riordan should set up a process for which their internal legal department can handle the brunt of the load to further reduce costs.
Enterprise Liability
Enterprise Liability suggests that those who profit from a risk should also bear the cost of accidents that arise from that risk (Keating, 2001). With manufacturing plants in several locations, including internationally, there is significant
The following Enterprise Risk Management (ERM) plan was developed for Riordan Industries, Inc. and its subsidiaries. The goal of this plan is to help mitigate any legal liability on the part of Riordan by implementing the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework (Jennings, 2006).
Alternative Dispute Resolution
Alternative Dispute Resolution is a way of resolving differences outside of the courtroom. This includes anything from informal negotiations, to formal written arbitration (Jennings, 2006). Currently, Riordan keeps an attorney on retainer but does not have a dispute resolution in process, thus if a conflict were to escalate, they would not have a resolution plan in process. It is in Riordan’s best interest to have a mediation process in place to help settle disputes. The reasoning is mediation is cheaper than other dispute resolution methods, especially litigation, and it protects the confidentiality of the parties involved (Peters and Mastin, 2007). Riordan’s internal legal council will work directly with the law firm on retainer to develop a mediation process with varying levels of triggers based on levels of risk. In doing so, Riordan should set up a process for which their internal legal department can handle the brunt of the load to further reduce costs.
Enterprise Liability
Enterprise Liability suggests that those who profit from a risk should also bear the cost of accidents that arise from that risk (Keating, 2001). With manufacturing plants in several locations, including internationally, there is significant
References: BusinessDictionary.com. (n.d.). BusinessDictionary.com. Retrieved from http://www.businessdictionary.com/definition/corporate-governance.html Jennings, M. M. (n.d.). Business: It 's Legal, Ethical, and Global Environment (7th ed.). Keating, G. C. (2001). The Theory of Enterprise Liability. Vanderbuilt Law Review. Retrieved from http://law.vanderbilt.edu/publications/vanderbilt-law-review/archive/volume-54-number-3-april-2001/download.aspx?id=2846 Legal-Explainations.com. (n.d.). Legal-Explainations.com. Retrieved from http://www.legal-explanations.com/definitions/product-liability.htm Peters, R.J., and Mastin, D.B. (2007, May - July). To mediate or not to mediate: That is the question. Dispute Resolution Journal, 62(2), 14-21. University of Phoenix. (2004). Riordan Manufacturing [Computer Software]. Retrieved from University of Phoenix, Simulation, Law 531 website.