GPHR (GPHR) Global Risk and Compliance 2

Question 1

A multinational company is expanding into a country with ambiguous labor laws regarding overtime pay. What is the BEST risk mitigation approach?

Accepted Answer

Consult local legal counsel and document the interpretation used

Answer

Engaging local legal counsel and documenting the rationale provides a defensible compliance position in ambiguous regulatory environments.

Question 2

Which international framework specifically addresses anti-bribery compliance for multinational corporations operating in the UK?

Accepted Answer

UK Bribery Act 2010

Answer

The UK Bribery Act 2010 applies to companies with operations in the UK and criminalizes both domestic and foreign bribery, including failure to prevent bribery.

Question 3

An HR manager discovers that a subsidiary in a developing country is using child labor as permitted under local custom but violating ILO Convention 138. What action should be taken FIRST?

Accepted Answer

Escalate to senior leadership and initiate a remediation plan aligned with ILO standards

Answer

Escalating internally and developing a remediation plan ensures the issue is addressed systematically without causing abrupt harm to the affected children.

Question 4

When conducting a global HR compliance audit, which risk category refers to the potential financial loss from failing to comply with employment regulations?

Accepted Answer

Regulatory/compliance risk

Answer

Regulatory or compliance risk specifically encompasses fines, penalties, and financial losses stemming from violations of employment and labor regulations.

Question 5

A global company's code of conduct prohibits facilitation payments. An employee in a country where such payments are culturally routine reports being pressured to make one. What is the MOST appropriate HR response?

Accepted Answer

Support the employee in refusing and escalate through the ethics hotline

Answer

Supporting the employee to refuse and using established reporting channels upholds the company's global compliance standards regardless of local custom.

GPHR - Global Professional in Human Resources Practice Test

GPHR - Global Professional in Human Resources Practice Test

GPHR (GPHR) Global Risk and Compliance 2