Departmental Potential Liability Reduction Report

DEPARTMENTAL POTENTIAL LIABILITY REDUCTION REPORT
Assumptions of Report: This Departmental Potential Liability Reduction Report (DPLRR) is
prepared by the head of Finance department.
Purpose of the Report/Assignment: Propose of the report is to provide with information and
associated legal concepts that are integral for effective functioning of the finance department.
Essentially, understanding of these concepts would help in gaining knowledge on the association
of the discussed legal concepts with liability of the department’s activities.
WEEK ONE MATERIAL:
Sources of Law:
A. Definitions/Descriptions: Source of law, can be defined as the source of
origin of the laws that governs the nation. The main sources of law in this
regards are, common law that has been developed from the past traditions and
customs of the land, legislation that are the acts of the parliament, European
Union law that came into place due to the association with European Union
and had major impact on the internal laws and European convention on
Human Rights (DiMatteo, 2010).
B. Identification of Sources of Law Relevant to Department: In case of the
finance department and companies that operate in the insurance sector, as
observed in this case, legislation is the most relevant sources of law for the
finance department. The reason being it is governed by acts like Insurance
companies Act 1982. In case the legislations that governs the department is
not abided, it would result in litigation against the department and liability
associated with fines may be imposed on them.
C. Training Methods Suggested to Reduce Behavior That Might Create
Liability: In order to keep the members of the finance department updated
about the legislations and acts that governs the department, training sessions
would be conducted in which seminars would be held to aware them about the
updated legislations and conduct group discussions for ascertaining that
effective understanding of the acts (Phillips, 2012).

D. Suggested Protocols to Minimize Potential Liability: In order to ascertain
that members of the finance department abide to the legislations that govern
the department and there remains minimized liability, internal auditing would
be conducted (Pickett, 2010). This would help in ascertaining that the entire
team member who is not abiding to the acts gets identified and necessary
actions are taken against them.
II. Dispute Resolution Methods:
A. Definitions/Descriptions: One of the most effective and cost effective dispute
resolution method that is beneficial for commercial insurance disputes is
Alternative Dispute resolution [ADR] which may be defined as the method of
dispute resolution without the involvement of litigation. Herein methods like
arbitration and mediation can be useful for finance department (Blake,
Browne & Sime, 2016). In case of arbitration, an arbitrator is incorporated in
order to bring the involved parties to an agreement. In case of mediation, joint
sessions are conducted with the involved parties, determine the ground rules
and identify the issue for its resolution.
B. Identification of Dispute Resolution Methods Relevant to Department:
For the finance department, within ADR mediation and arbitration would be
the most relevant dispute resolution method for the department. The reason
being, the department can resolve associated conflicts in a cost effective
manner and it would require less time as compared to court proceedings. In
this method, the liability is associated with the ways and terms based on which
disputes in regards to resolving claims and contractual issues are to be
resolved.
C. Training Methods Suggested to Reduce Behavior That Might Create
Liability: In order to educate the team members about different dispute
resolution methods and initiatives that are needed to be taken in such
situation, training would be conducted that would primarily involve group
discussions in order to aware them about the different ADR methods (Pollock,
Hamann & Wilson, 2011). In order to help them understand the ways they are
needed to act in each situation, role playing would be conducted, this would