Risk Assessment and Management Flashcards
7 cards from real CPHR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Risk Assessment and Management flashcards as text
An HR director is asked to quantify the financial exposure from potential age discrimination claims. This process is known as:
Answer: Risk quantification
Risk quantification involves assigning monetary values or numerical estimates to risk exposure, enabling prioritization and financial planning.
Which leading indicator is MOST useful for predicting future workplace safety incidents?
Answer: Number of safety training completions and near-miss reports
Safety training participation and near-miss reporting are leading indicators that predict future incidents, whereas TRIR and claim costs are lagging indicators.
A company's risk appetite statement specifies 'zero tolerance for legal non-compliance.' An HR manager discovers a wage classification error affecting 50 employees. The CORRECT first action is:
Answer: Self-report to the Department of Labor and develop a remediation plan
A zero-tolerance policy for non-compliance means immediate corrective action and self-reporting aligns with the organization's risk appetite and reduces potential penalties.
Which HR risk control is an example of a 'detective control' rather than a 'preventive control'?
Answer: Annual compensation equity audit
A compensation equity audit detects pay disparities after they have occurred, making it a detective control, while the other options prevent problems before they arise.
Under which circumstance is it legally permissible for an employer to implement a mandatory retirement age for employees?
Answer: For bona fide executives or high-level policymakers who qualify under the ADEA exception
The ADEA permits mandatory retirement at age 65 for bona fide executives entitled to a pension of at least $44,000 annually — a narrow statutory exception.
A risk owner in the HR context is BEST described as:
Answer: The individual accountable for monitoring and managing a specific risk
A risk owner is the designated individual within the organization who holds accountability for managing a specific risk and ensuring appropriate controls are in place.
Which scenario represents a 'compound risk' in HR management?
Answer: A layoff that simultaneously triggers WARN Act obligations, COBRA administration needs, and potential discrimination claims
A compound risk occurs when one event generates multiple interconnected risk exposures simultaneously, as a layoff triggers legal, administrative, and litigation risks together.