HR Risk Assessment & Management 4

Question 1

Which technique is used to assign probability and impact scores to risks in a qualitative risk assessment?

Accepted Answer

Probability-Impact matrix

Answer

A Probability-Impact (PI) matrix ranks risks by plotting likelihood against severity using descriptive scales.

Question 2

An HR manager notices that employee turnover in the engineering department has tripled over six months. In risk terms, this is BEST described as:

Accepted Answer

A Key Risk Indicator signaling elevated talent-retention risk

Answer

KRIs are metrics that provide early warning signals of increasing risk exposure before a major loss occurs.

Question 3

A software company's HR team must comply with CCPA. Which risk does non-compliance MOST directly create?

Accepted Answer

Regulatory fines and civil litigation from California residents

Answer

CCPA violations expose organizations to statutory damages and enforcement actions by the California Attorney General.

Question 4

When conducting a risk assessment for an HR cloud migration, which asset should be inventoried FIRST?

Accepted Answer

All data types and their sensitivity classifications

Answer

Knowing what data exists and its sensitivity level is prerequisite to assessing what risks a migration poses.

Question 5

Which scenario best illustrates an inherent risk in an HRIS before any controls are applied?

Accepted Answer

Sensitive employee data is accessible to anyone with network access by default

Answer

Inherent risk is the raw risk level that exists without any mitigating controls in place.

HR - Software Practice Test