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
A global company's Code of Conduct prohibits conflicts of interest. An HR manager in a regional office awards a contract to a company owned by their spouse without disclosure. This is BEST classified as:
Answer: A conflict of interest and potential ethics violation requiring investigation
Awarding contracts to a spouse's company without disclosure is a textbook conflict of interest and ethics violation that requires a formal investigation.
Which of the following BEST describes 'forced labor' as defined under ILO Convention No. 29?
Answer: Work extracted from a person under the menace of a penalty and for which the person has not offered themselves voluntarily
ILO Convention No. 29 defines forced labor as work extracted under the threat of penalty where workers have not volunteered freely.
During an HR audit in a Southeast Asian manufacturing facility, an auditor finds that workers pay recruitment fees to get their jobs, creating debt bondage. This situation represents:
Answer: An indicator of forced labor and a violation of responsible recruitment principles
Worker-paid recruitment fees creating debt bondage are recognized indicators of forced labor under the ILO's definition and violate responsible recruitment standards.
A company operating in a country with high corruption risk wants to implement effective anti-corruption controls. Which control is MOST effective as a preventative measure?
Answer: Implementing robust pre-employment background checks and third-party due diligence before engagement
Pre-engagement due diligence on employees and third parties is the most effective preventative control because it identifies corruption risk before relationships are established.
What is the role of 'tone at the top' in building an ethical global compliance culture?
Answer: Senior leadership's visible commitment to ethics sets the standard for employee behavior throughout the organization
'Tone at the top' refers to how senior leadership's visible values and behaviors model ethical standards that cascade through the entire organization.
A global company's employees in Country A are legally required to join a specific government-controlled union. The company's global policy supports freedom of association. How should HR handle this conflict?
Answer: Comply with the local legal requirement while documenting the constraint and advocating for worker rights where possible
When local law mandates union membership, HR must comply with that law while transparently documenting the deviation from global policy and advocating for improved conditions where possible.
Which of the following is a KEY element of an effective global compliance training program?
Answer: Tailoring content to local legal requirements, cultural context, and role-specific risks
Effective global compliance training must be locally relevant, culturally appropriate, and tailored to the specific risks employees face in their roles and jurisdictions.