Risk Management Flashcards

Under the Uniform Guidelines on Employee Selection Procedures, which result is generally treated as evidence of adverse impact?

Answer: A group's selection rate is less than 80% of the highest group's rate

The four-fifths (80%) rule flags adverse impact when a group's selection rate falls below 80% of the highest group's rate.

A DEI leader reviews a hiring assessment that is applied equally to everyone but screens out one racial group far more often than others. Which legal theory creates the main risk?

Answer: Disparate impact

Disparate impact covers facially neutral practices that disproportionately harm a protected group, as established in Griggs v. Duke Power.

In a risk register, what does 'residual risk' mean?

Answer: The risk that remains after controls and mitigation are in place

Residual risk is the exposure left over once mitigation controls have been applied to inherent risk.

Buying Employment Practices Liability Insurance (EPLI) is an example of which risk response strategy?

Answer: Transfer

EPLI shifts the financial impact of discrimination and harassment claims to an insurer, which is risk transfer.

Generally, how long does an employee have to file a Title VII charge with the EEOC?

Answer: 180 days, or 300 days where a state or local agency enforces a similar law

The EEOC deadline is 180 days, extended to 300 days where a state or local FEP agency enforces a similar law.

Which metric is the best leading key risk indicator (KRI) for a growing harassment problem?

Answer: A rise in informal complaints and hotline reports in one business unit

Rising informal complaints signal emerging risk before it turns into formal claims, which makes them a leading indicator.

Under the Lilly Ledbetter Fair Pay Act of 2009, when does the filing period for a pay discrimination claim reset?

Answer: With each paycheck affected by the discriminatory decision

The Ledbetter Act provides that each paycheck affected by a discriminatory pay decision restarts the charge-filing period.