CPHR Risk Assessment and Management 2

Question 1

A company's HR department discovers that a key employee has been sharing confidential compensation data with competitors. Which risk category does this primarily fall under?

Accepted Answer

Operational risk

Answer

Unauthorized disclosure of confidential data by an employee is an operational risk, as it stems from internal processes and human behavior failures.

Question 2

When conducting a risk probability assessment, an HR manager rates a risk as 'likely' with 'significant' impact. On a standard 5x5 risk matrix, this would typically fall in which zone?

Accepted Answer

Orange (high risk)

Answer

A 'likely' probability combined with 'significant' impact typically places a risk in the high (orange) zone on a standard risk matrix, requiring prompt mitigation.

Question 3

Which approach to risk treatment involves an organization choosing not to engage in an activity that creates unacceptable risk exposure?

Accepted Answer

Risk avoidance

Answer

Risk avoidance means deciding not to pursue or continue an activity because its associated risks exceed the organization's tolerance level.

Question 4

An organization implements an employee wellness program to reduce workers' compensation claims. This is an example of which risk management strategy?

Accepted Answer

Risk reduction

Answer

Risk reduction (mitigation) involves taking proactive steps to lower the likelihood or impact of a risk, such as wellness programs that decrease injury-related claims.

Question 5

Under the OSHA General Duty Clause, employers are required to:

Accepted Answer

Maintain a workplace free from recognized serious hazards

Answer

The OSHA General Duty Clause (Section 5(a)(1)) requires employers to furnish a workplace free from recognized hazards likely to cause death or serious physical harm.

(CPHR) Chartered Professional in Human Resources Practice Test

(CPHR) Chartered Professional in Human Resources Practice Test

CPHR Risk Assessment and Management 2