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 organization's CHRO presents the risk register to the board of directors. The PRIMARY purpose of this activity is to:
Answer: Enable the board to exercise oversight of material HR risks
Presenting the risk register to the board enables governance oversight, ensuring that directors can fulfill their fiduciary responsibility to monitor organizational risk.
Which federal law creates the MOST significant HR risk related to employee data privacy in the United States?
Answer: HIPAA (Health Insurance Portability and Accountability Act)
HIPAA creates significant HR risk because it regulates protected health information (PHI) in employer-sponsored health plans, requiring strict safeguards and limiting how employee health data is used.
When applying the hierarchy of controls to workplace hazards, which control type is considered MOST effective?
Answer: Elimination of the hazard
Elimination removes the hazard entirely and is ranked highest in the hierarchy of controls because it provides the most complete and reliable protection.
A merger integration plan requires combining two workforces with different compensation structures. The GREATEST legal risk HR must assess is:
Answer: Potential Equal Pay Act violations if similar roles have disparate pay by gender post-integration
Post-merger compensation integration can create unlawful pay disparities if employees in substantially equal roles are paid differently based on gender, creating Equal Pay Act exposure.
A key risk indicator (KRI) for talent retention risk would MOST likely include:
Answer: Voluntary turnover rate among high-performers in critical roles
Voluntary turnover among high-performers in critical roles is a direct KRI for talent retention risk because it signals loss of strategic human capital.
An HR manager is reviewing a vendor contract for background screening services. Which clause is MOST important from an HR risk management perspective?
Answer: Indemnification and FCRA compliance warranties
Indemnification and FCRA compliance warranties protect the employer if the vendor's errors cause regulatory violations or litigation, making these the most critical risk-related clauses.
Which HR practice BEST supports a 'three lines of defense' model for risk management?
Answer: HR operating as the first line owning processes, compliance teams as the second line providing oversight, and audit as the third line providing assurance
The three lines of defense model assigns risk ownership to operational teams (first), oversight to compliance/risk functions (second), and independent assurance to internal audit (third).