Risk Management and Compliance Flashcards
7 cards from real GPHR 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 Management and Compliance flashcards as text
Which concept describes the process by which a parent company can be held legally responsible for the actions of its foreign subsidiaries regarding human rights violations?
Answer: Parent company liability / duty of care
Parent company liability or duty of care holds that a parent company can be legally responsible for harm caused by subsidiaries if it exercised control or created the risk.
A global HR director is implementing a new anti-harassment policy. To be effective internationally, the policy MUST:
Answer: Be adapted to local legal requirements while maintaining core global standards
A global anti-harassment policy must balance consistent core standards with adaptation to local legal definitions and cultural contexts.
What is the significance of the 'Protect, Respect and Remedy' framework in global HR compliance?
Answer: It is the UN framework outlining state duties and corporate responsibilities regarding human rights
The 'Protect, Respect and Remedy' framework, developed by John Ruggie for the UN, defines state duties to protect human rights and corporate responsibility to respect them.
An employee in a country with no legal protection against discrimination based on sexual orientation is fired for being gay. The parent company is headquartered in the US. What should the global HR policy address?
Answer: Enforce the parent company's non-discrimination standards globally, even where local law does not require it
Best practice for global companies is to apply their own non-discrimination standards universally, even in countries where local law does not mandate such protections.
What does 'reputational risk' specifically refer to in the context of global HR compliance?
Answer: The potential for negative public perception to harm the company's brand and business relationships
Reputational risk refers to the potential damage to a company's brand, trust, and stakeholder relationships resulting from perceived or actual misconduct.
A company acquires a foreign subsidiary and discovers undisclosed labor violations. Under the GPHR framework, what is the BEST immediate action?
Answer: Conduct a thorough HR due diligence audit and develop a remediation plan
Post-acquisition, HR should immediately conduct due diligence to fully understand the scope of violations and develop a structured remediation plan.
The principle of 'proportionality' in risk management means that:
Answer: The level of response to a risk should correspond to its severity and likelihood
Proportionality in risk management dictates that resources and responses should be scaled to the actual severity and probability of each risk.