FREE Global Professional in Human Resources (GPHR) Global Risk and Compliance Questions and Answers

Question 1

A U.S.-based multinational corporation (MNE) stores employee data from its French subsidiary on servers located in the United States. Which of the following is the primary compliance obligation under the General Data Protection Regulation (GDPR) that the company must address for this cross-border data transfer?

Accepted Answer

Ensuring an adequate data protection mechanism, such as Standard Contractual Clauses (SCCs), is in place.

Answer

The EU's GDPR imposes strict rules on transferring the personal data of its residents outside the European Economic Area (EEA). Because the U.S. is not considered by the EU to have an adequate level of data protection, the MNE must use a specific legal mechanism, like Standard Contractual Clauses (SCCs) or Binding Corporate Rules (BCRs), to legally transfer the data and ensure it remains protected to EU standards.

Question 2

Which of the following actions by an employee of a U.S. company operating abroad would MOST likely constitute a violation of the U.S. Foreign Corrupt Practices Act (FCPA)?

Accepted Answer

Offering a significant cash payment to a foreign government minister to secure a large government contract.

Answer

The FCPA's anti-bribery provisions specifically prohibit offering anything of value to a foreign official to obtain or retain business. Offering a cash payment to a minister to win a contract is a direct and clear violation. While 'grease payments' are a narrow exception (and illegal under many local laws), and bona fide business expenses are permissible, a direct payment to influence a contract award is the primary target of the act.

Question 3

A global HR professional is tasked with establishing a global risk management framework. What is the critical initial step in this process?

Accepted Answer

Identifying and categorizing potential risks across all areas of global operations.

Answer

The foundation of any effective risk management framework is risk identification. Before mitigation strategies (like insurance), response plans (like evacuations), or training can be effectively developed, the organization must first perform a comprehensive assessment to understand the full spectrum of potential risks it faces, including legal, operational, security, financial, and reputational risks.

Question 4

An expatriate employee in a politically unstable region is the victim of a carjacking, resulting in no physical injury but significant emotional distress. Beyond ensuring immediate physical safety, what is the MOST critical next step for the company to fulfill its duty of care?

Accepted Answer

Arranging for immediate access to professional counseling and psychological support.

Answer

An employer's duty of care extends beyond physical safety to encompass the mental and emotional well-being of its employees. After a traumatic event, providing immediate access to professional counseling is a critical component of fulfilling this duty, addressing the potential for post-traumatic stress disorder (PTSD) and other stress-related issues.

Question 5

A U.S.-based technology firm is planning a significant workforce reduction at its subsidiary in Germany. To remain compliant, the firm's primary obligation is to:

Accepted Answer

consult with the established works council to negotiate a 'social plan'.

Answer

German labor law mandates a system of co-determination, giving works councils (Betriebsrat) significant rights. For major operational changes like mass layoffs, management is legally required to inform and consult with the works council. The objective is typically to negotiate a 'social plan' (Sozialplan) that outlines compensation, retraining, and other measures to mitigate the negative consequences for the affected employees.

GPHR - Global Professional in Human Resources Practice Test

GPHR - Global Professional in Human Resources Practice Test

FREE Global Professional in Human Resources (GPHR) Global Risk and Compliance Questions and Answers