An important part of risk management is to have policies, procedures and methods of preventing, detecting, and correcting problems or issues that may arise. Such policies can help reduce the damages arising from the tort. Of the three, which is most important, if any? Also, as problems are detected and or corrected, at what point should legal counsel get involved, if at all? Do these controls help with both criminal and tort liabilities? Why or why not? Thoughts?

There are a number of important aspects of risk management, but prevention appears to be the best risk management practice. According to Bessis 2015, when a problem is prevented, the cost of detection and or correcting the mistake is automatically reduced. Prevention is imperative since it is the initial stage that reduces cost. However, it is critical to note that detection of a problem in the event that it was not prevented is also important (Bessis, 2015). A legal counsel should be involved at the stage where a problem has been detected. It is at the point of the detection that the legal team is able to dissect the causative agent of the problem and formulate mechanism to prevent future risks and also to offer lasting correction to the problem. The risk management approaches of prevention, detection and correction of a problem helps in criminal and tort liabilities to a very large extent. Criminal liability helps by detecting the cause of the problem and the responsible authority taking responsibility for the damage caused by their actions or inactions.

References

Bessis, J. (2015). Risk management in banking. John Wiley & Sons.