HR Risk Assessment & Management 5

Question 1

An organization accepts a low-level risk because the cost of controls exceeds the potential loss. This decision should be:

Accepted Answer

Formally documented and approved by an authorized risk owner

Answer

Even accepted risks require documented authorization so accountability is clear and decisions can be revisited.

Question 2

Which HR-specific risk is MOST associated with poorly designed performance management software?

Accepted Answer

Biased or inconsistent evaluations leading to discrimination claims

Answer

Algorithmic bias in performance tools can produce inequitable outcomes that expose the company to employment discrimination liability.

Question 3

A disaster recovery plan (DRP) for an HRIS should be tested using which method to confirm full recoverability WITHOUT impacting production?

Accepted Answer

Parallel (simulation) test using a restored copy in an isolated environment

Answer

A parallel test restores systems in an isolated environment, validating recoverability without any risk to live operations.

Question 4

Under HIPAA, an HR department that self-administers a company health plan must treat employee health records as:

Accepted Answer

Protected Health Information (PHI) with strict access limitations

Answer

Self-insured employer health plans are covered entities under HIPAA, making employee health data PHI subject to its full privacy rules.

Question 5

A software firm wants to assess supply-chain HR risks. Which scenario represents this risk type?

Accepted Answer

A key contractor's company goes bankrupt, halting critical project delivery

Answer

Supply-chain HR risk includes dependency on external contractors or vendors whose disruption directly impacts the organization's operations.

HR - Software Practice Test