Enterprise Risk Management

Masonite Manufacturing Plant

Challenge:

A new $100 million oriented-strand board plant had been newly constructed in a Southern state. When ground level measurements of formaldehyde on-site exceeded a non-enforceable state EPA regulatory guideline, the state did not provide operating permits. All emissions controls had been optimized. The levels were well below toxicologically meaningful risk levels and below OSHA standards. Other environmental consulting firms offered no solutions.

Solution:

Since the nearest residents were over two miles from the plant, we modeled the maximum expected residential formaldehyde exposures in concentric circles moving towards the city. By objectively demonstrating the de minimis levels of formaldehyde that could potentially reach populations, we were able to achieve buy-in from the state toxicologist and air quality officials. The plant received its permit for operation.

Reflection:

State regulators and other decision makers were willing, after being given sufficient, convincing scientific evidence that human exposure levels would be toxicologically safe, to reassess and reverse their previous position. We provided significant, successful enterprise risk management for our client who was at risk of having its new facility shut down.

Premier World Toy Brand Manufacturer

Challenge:

One of the largest toy manufacturers in the United States found that its toys, largely produced in China, had been painted with paint containing excessive levels of lead. One of the company's Chinese suppliers had supplied this paint, which had been mixed with other, non-lead containing paints used on the toys. The extent of its use and the concentrations present on the toys sent to the United States were not clear. We were asked to help determine how much risk these toys posed to children and to help develop an accurate message for the concerned public.

Solution:

The company's testing laboratory in China was able to track the shipments and determine the paint and the lead concentrations present on the different toy shipments. Once these were identified, we were able to assist the manufacturer to identify the toys containing any lead paint concentrations which would, using the most conservative risk assessments, pose a health threat to the very youngest infant coming in contact with and sucking such toys. The company then announced its recalls in a targeted fashion, confident that the health of its toy users was protected.

Reflection:

Our toxicological expertise addressing risk assessment for potential exposures allowed our client to mitigate its risk in a medically-driven, objectively-managed fashion.

Other Case Studies