FREE PHR Risk Management Questions and Answers

Question 1

An HR professional is conducting a risk assessment for a new employee wellness program. Which of the following best describes the primary objective of this assessment?

Accepted Answer

To identify potential threats and vulnerabilities associated with the program.

Answer

To determine the program's return on investment (ROI).

Answer

To gather employee feedback on program preferences.

Answer

To benchmark the program against industry best practices.

Question 2

A company is implementing a new HRIS (Human Resources Information System) that will store sensitive employee data. Which of the following is the most critical risk management step for the HR team to undertake during the implementation phase?

Accepted Answer

Establishing clear data security protocols and conducting a privacy impact assessment.

Answer

Developing a comprehensive training program for all employees on the new system's features.

Answer

Negotiating the lowest possible cost with the HRIS vendor.

Answer

Creating a detailed project timeline with milestones for system rollout.

Question 3

Which of the following is an example of 'risk mitigation' in the context of HR practices?

Accepted Answer

Implementing a mandatory harassment prevention training program for all managers and employees.

Answer

Deciding to accept the financial loss from a potential lawsuit rather than investing in preventive training.

Answer

Transferring the risk of employee injury to an insurance provider through workers' compensation.

Answer

Ignoring a minor compliance violation, assuming it won't be discovered.

Question 4

An organization identifies a high risk of employee burnout due to consistently heavy workloads. Which of the following strategies represents a 'risk avoidance' approach?

Accepted Answer

Hiring additional staff to distribute workloads more evenly.

Answer

Offering stress management workshops and counseling services.

Answer

Revising project deadlines to be more realistic and manageable.

Answer

Implementing a flexible work schedule policy to allow better work-life balance.

Question 5

During a routine HR audit, it's discovered that several independent contractors are being treated like employees (e.g., provided company equipment, supervised closely, integrated into company culture). This situation poses a significant risk primarily related to:

Accepted Answer

Misclassification and potential legal liabilities (e.g., back taxes, benefits, penalties).

Answer

Intellectual property theft.

Answer

Employee morale and engagement.

Answer

Data privacy breaches for contractors.

Question 6

Which of the following best describes the role of HR in proactive risk management for an organization?

Accepted Answer

Ensuring compliance with all relevant employment laws and regulations.

Answer

Primarily responding to legal claims and lawsuits after they occur.

Answer

Delegating all risk assessment responsibilities to the legal department.

Answer

Focusing solely on financial risks and insurance policies.

An HR professional is conducting a risk assessment for a new employee wellness program.Which of the following best describes the primary objective of this assessment?

An HR professional is conducting a risk assessment for a new employee wellness program.
Which of the following best describes the primary objective of this assessment?