Term Paper on "IBM Canada"

Term Paper 10 pages (3028 words) Sources: 5

[EXCERPT] . . . .

IBM Canada

Over the last several decades, a variety of businesses have been facing increasing amount of risk. Part of the reason for this, is because the overall nature of the law has been constantly changing. As the legal system, is based upon various interpretations and case precedent to provide the most appropriate analysis. This has meant that many companies have become increasingly exposed to a variety of risks. As this mechanism is often utilized by lawyers, to try and squeeze many corporations for possible violations that occurred.

In some cases, this could nothing more than employee error / anomalies. However, despite this issue, many attorneys will seek some kind of legal remedy once this has been discovered. For many corporations this can be particularly problematic. The reason why, is because they will have to spend added amounts of money in trying to deal with these issues. As a result, a host of organizations must be able to determine the overall risks that they are facing. In the case of IBM Canada, they are facing considerable risks due to: the size of their business and the wide variety of transactions that they are involved in. This means that managers must be aware of these underlying risks and how they can be effectively mitigated. To determine how this be accomplished requires conducting a careful analysis of IBM Canada. This will occur through: analyzing the measures that are taken to manage those risks, the importance of contacts to the organization, applying the legal risk management model and identifying key legal issues affecting the company. Together, these different elements will provide the greatest insights, as to the overall amount of liabilities that they are facing.

Choose an organization (business or non-profit) in which you are interested and about which you can access the information necessary for this paper. Introduce your chosen business or organization by describing it in terms of size, location, industry, etc. Explain why you chose it.

IBM Canada is one of main providers of: sophisticated it services, products, and business consulting solutions. The company is dedicated to helping its customers achieve success in their respective businesses by using the latest technology and solutions. This includes: aerospace, defense, automobile, banking, chemicals, petroleum, construction, consumer products, paper, education, energy, financial markets, healthcare, and insurance are some of the industries where products / services. This is the unit that brings huge profits for its parent company IBM. However, in its efforts to maintain its success, this has led to a variety of business risks.

Identify the key tort risks faced by your chosen organization. Describe the possible consequences of those risks and how they are being managed.

A tort is any kind wrong doing that involves a breach of: a civil duty owed to an individual or a group of individuals. During the daily business operations, IBM Canada, faces a wide variety of tort risks. The most notable include: injuries to employees, product liability risks, risks related to delay in the delivery of products or solutions, general liability risks, privacy or security breaches due to negligence of employees, and tort risks (arising from a failure of one of their sub-contractors). There are a number of different risks faced by the company to include: injuries from an employee of IBM Canada, injuries to non-employees, product liability issues, a delay in the different products / services and data theft.

Injuries Occurring to an Employee of IBM Canada

An IBM Canada employee who suffers an injury due to: the functioning or operations of the organization is entitled to receive monetary compensation from the company. Accidents occurring to employees within the premises during: work or other operations (through any medium) comprise a major tort risk for the company.

Injuries Occurring to Non-Employees of IBM Canada

Any individual who receives an injury due to the functioning or operations of IBM Canada is also entitled to receive monetary compensation from the company. The term "injuries" here not only includes physical injuries to a person, but also the emotional and economic injuries (resulting from the conduct of the company or its employees). At the same time, the matters of: privacy, security and property are also covered under "legal injuries." (Osmond, 2010)

Product Liability

IBM Canada offers a wide array of services including: IT, business consulting, application services, outsourcing, end user services, integrated communications, maintenance, technical support, middleware and security services to clients. Similarly, the company offers a variety of products including: software, storage, servers / systems, personal computers, printing systems, networking, semiconductors, accessories / parts, small and medium sized business products. All this poses, a liability for the tort risks of the company, which may occur due to defective hardware / software products or copyright infringement occurring (from the negligence of the employees).

Delay in the Delivery of Products or Solutions

IBM Canada gets a large number of orders / projects from its clients to include: software products, systems delivery and for other services. As per agreements, the company has to complete all of the orders within the time constraints specified in the contract with the client. However, there is always a risk that an order is not completed within the time limits. This due to some unwanted event such as: a fire breaks out within the premises, natural disaster and employee issues. as, all of these situations pose tort risks for the company.

Data Theft

Data theft is another major tort risk for IBM Canada. An example here can be seen with the incident that occurred when a hard drive was stolen from a subsidiary. It contained some personal information about a large number of people. Even though there was no theft that was reported; the company was sued for negligence and breach of fiduciary responsibility. They also had to deal with charges of: violations of privacy and breach of confidence. ("E-commerce risks becoming mainstream insurance concern,"2004)

Possible Consequences of Torts and Measures Taken to Avoid Tort Risks

It is apparent that all these tort risks pose major threat for the success of IBM Canada. As one of these events, can: result in financial penalties, huge losses, and loss of customers / clients for the company. To avoid this, IBM implements numerous measures to effectively deal with tort risks. These include: detailed risk management / planning, implementation of specified rules / guidelines for employees, and the adoption of various other policies. Quality testing, the security / validation of data and authentication of users; are some of the procedures that are followed to minimize the data theft / product liability tort risks. Contingency plans are made in advance, to deal with different types of situations that may offer hindrance in: a timely completion of the projects/orders. To deal with natural disasters, different recovery plans are made to minimize these effects on the company. as, they purchase insurance policies (from time to time) to: cover against accidents and natural disasters.

Importance of Business Contracts for IBM Canada

Business Contracts serve as a perfect way to deal with a number of risks for IBM Canada. In fact, they have played a very significant role in the success of the business. as, the company uses formal written contracts; while, engaging in various transactions with other organizations. The written contracts provide them with a legal document describing all the expectations of: the client and IBM Canada. These contracts also explain in detail how: IBM Canada and the other parties can deal with any unwanted situations arising during the business operations. These contracts are legally enforceable in a court of law, which act as a tool that IBM Canada can use to protect its: assets and resources. These contracts help the company in getting the desired level of services from its vendors. They also allow them to locate the resources or material from vendors at: fixed costs for a defined period of time. A major advantage of contracts for IBM Canada is that it can limit any liability linked with contract risk in the document itself.

IBM Canada also services contracts with other companies this includes: maintenance, technical support or call center operations. These contracts ensure: that IBM Canada receives quality services from its vendors at agreed costs for a defined time period. They also help IBM Canada to maintain long-term relationships with: the customers, clients and vendors. These contracts give the company the liberty to: take legal actions against the vendors if they don't complete the work in accordance with the agreement. (Osmond, 2010)

Apply the legal risk management model found in Chapter 3 to your chosen business or organization to identify the key legal risks involved in the organization. Explain the importance of those risks.

In today's business environment, it is becoming more common to see a number of legal cases being filed against companies by: employees, contractors, clients and other parties. Especially in the it sector, as companies are facing increasing amounts of legal issues. It is therefore necessary, for them to: properly evaluate and manage the risks, which may pose as… READ MORE

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