Assignment 5 – Crimes and Torts
Instructions
Assignment 5 – Crimes and Torts (PO4, PO5, CO2, CO6, ILO.SK3, SK4, BIS3, IS1, CL1, DL5)
Assignment Instructions
For this assignment you will be creating a crime prevention plan. This assignment will follow Lesson 4’s template of quadrants and seven columns, but applied to crime and tort. Think about customer and partner crimes and torts as well as those not associated with the business.
1. List your Quadrant A crimes and torts
2. List your Quadrant B crimes and torts
3. List your Quadrant C crimes and torts
4. List your Quadrant D crimes and torts
5. Complete a Crime Prevention table (from the article Hirai, 2015):
a. The first column, Crime Factors, will derive from your four Quadrants of crimes and torts.
b. The second column, Type, is based on what type of crime it is.
c. The third column, Likelihood, is your decision of low, medium, or high potential of crimes and torts.
d. The fourth column, Consequences, is your description of what will happen to the company if that crime and tort comes to “life.” Be thoughtful, be realistic, be truthful, and be specific.
e. The fifth column, Mitigation Tactics, is a list of your ideas of what you can do to minimize the impact of the consequence (column 4) or to reduce the likelihood of it happening.
f. The sixth column, Mitigation Costs, is your determination of the cost(s) for each mitigating factor (column 5). The costs may not be solely financial. Think about the non-financial risks as well. Again, be thoughtful, be realistic, be truthful, and be specific.
g. The seventh column, Status, is your decision of which mitigating tactics (column 5) you will implement.
Your table would look like the following with the first risk factor as an example:
Crime Factors Type Likelihood Consequences Mitigation Tactics Mitigation Costs Status
Not paying sales taxes Legal & Regulatory Low Government places lien on business, may be held personally liable for the taxes Hire CPA to complete taxes, annually and quarterly; file taxes $150-$400/hour, depending on work being done by CPA In planning phase
Minimum 2 pages of content
Minimum 1 table
Minimum 2 sources
APA format
Answers
Crime Mitigation Strategies
Student’s Name
Course
Date
Crime Mitigation Strategies
1. Quadrants of Crimes and Torts
Quadrant A: Crimes and torts directly committed against one’s customers, including fraud and theft.
Quadrant B: Crimes or torts of one’s partners or suppliers against oneself.
Quadrant C: Crimes and torts of internal company operations, such as internal theft and noncompliance issues.
Quadrant D: Crimes and torts that occur outside the business but might indirectly influence the company, such as cyber security attacks (James, 2024).
2. Crime Prevention Table
Factor for crime Type f crime Likelihood Consequences Tactics for mitigation Cost of crime mitigation Status of the crime
Avoidance of sales tax Legal and regulatory Low Personal liability for the tax
Government lien on the business Hire an expert to quarterly or annual complete taxes Between $150-$400 per hour, depending on the work done Planning phase
Customer data breach Cybercrime High Legal fines, reputational damages and loss of customer trust Training staff on data security
Implementing data security systems Between $5000 in software development
$2000 for staff training Active
Partner contract breach Civil medium Potential lawsuit
Supply chain disruption
Loss of resources Drafting a robust contract
Involvement of legal teams Time investments
Legal fees Under review
3. Analysis and Mitigation Strategies
Crime Prevention Table
A crime prevention table is a valuable tool that assists in assessing and managing different crimes and torts. A table shall have seven columns: Crime Factors, Type, Likelihood, Consequences, Mitigation Tactics, Mitigation Costs and Status. First are crime factors. These factors are deduced from the crimes and torts identified in the four quadrants. In this respect, “not paying sales taxes” could be a legal and regulatory issue that may arise within the corporation of all parties involved. The second consideration is the type of crime. This section categorizes the crime or tort in terms of nature – for instance, legal, regulatory, or civil. The third consideration is the likelihood of crime occurrence (James, 2024). The likelihood defines the crime or tort possibly occurring. It is measured on a low, medium, and high scale. This prioritizes the risk, such as a risk that has to be tackled right now against a risk that may be sorted out relatively slowly. The fourth consideration is the consequence of the crime occurrences. These are the effects on the business should a crime or tort occur. Examples may include everything from financial loss to corporate reputation.
The other consideration is the crime mitigation strategies: These strategies indicate what one might do to reduce the probability of the crime or minimize the damage from such an attack (Tunley et al., 2018). For example, it may be the employment of a CPA or any other tax expert to handle taxes and prevent issues with unpaid taxes from arising. Other matters of concern are the costs of mitigating a crime. These are in terms of financial and non-financial factors. The cost to prevent or control the risk should be realistic and related to the potential damage (Tunley et al., 2018). The final consideration is the status of the crime. The status of a crime defines the stage of execution taken by the company for all the mitigation strategies. Anything from “in planning phase” to “active” is based on how far a company has been able to carry out its prevention strategies.
By applying these strategies, businesses can minimize the chances of crimes and torts and ensure long-term stability in their operations.
References
Tunley, M., Button, M., Shepherd, D., & Blackbourn, D. (2018). Preventing occupational corruption: utilising situational crime prevention techniques and theory to enhance organisational resilience. Security Journal, 31(1), 21-52.
James, N. (2024). Business law. John Wiley & Sons.