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
When conducting HR due diligence before a merger or acquisition in a foreign country, which area represents the HIGHEST compliance risk that must be assessed?
Answer: Undisclosed employee benefit liabilities, labor law violations, and pending employment claims
Hidden employment liabilities, labor violations, and pending claims are the highest HR compliance risks in M&A due diligence because they transfer with the acquisition.
A company's global compliance program must address 'country risk.' Which factor is MOST relevant when assessing country risk for HR compliance purposes?
Answer: The country's rule of law, corruption index, and strength of labor law enforcement
Country risk for compliance is primarily assessed through indicators like rule of law, corruption perception, and the robustness of labor law enforcement mechanisms.
An HR professional discovers that a senior manager has been falsifying time records to reduce overtime payouts to hourly workers. Under a risk-based compliance framework, this situation represents:
Answer: High risk because it involves wage theft, legal liability, and potential criminal exposure for the company
Falsifying time records constitutes wage theft, exposing the company to significant legal liability, regulatory penalties, and potential criminal charges for the manager.
The concept of 'reasonable accommodation' in a global compliance context primarily refers to:
Answer: Adjusting working conditions or practices to enable employees with disabilities or religious needs to perform their jobs
Reasonable accommodation requires employers to make adjustments for employees with disabilities or sincerely held religious beliefs to enable job performance, as required under laws like the ADA.
A global company is subject to the UK Modern Slavery Act. What is the PRIMARY compliance obligation this law imposes on qualifying companies?
Answer: Publishing an annual transparency statement disclosing steps taken to address slavery and trafficking in operations and supply chains
The UK Modern Slavery Act requires qualifying companies to publish an annual statement detailing actions taken to identify and address modern slavery risks in their operations and supply chains.
Which approach BEST demonstrates 'proactive' risk management in global HR compliance, as opposed to a reactive approach?
Answer: Conducting regular risk assessments, audits, and training to identify and address risks before violations occur
Proactive risk management involves anticipating and addressing risks through ongoing assessment, training, and auditing before violations occur, rather than only responding after the fact.
Under the OECD Guidelines for Multinational Enterprises, what is the recommended approach for companies regarding employment and industrial relations in host countries?
Answer: Observe standards not less favorable than those observed by comparable employers in the host country
The OECD Guidelines recommend that MNEs observe standards at least as favorable as those of comparable local employers, setting a floor that respects local context while meeting global expectations.