GPHR GPHR Risk Management and Compliance Questions and Answers 2

Question 1

A multinational organization discovers that its subsidiary in Germany is not complying with the EU Works Council directive. What should the global HR professional prioritize first?

Accepted Answer

Conduct a compliance gap analysis and engage local legal counsel

Answer

A compliance gap analysis with local legal expertise identifies specific deficiencies and creates a structured remediation plan aligned with local law.

Question 2

Which risk mitigation strategy is most appropriate when an organization identifies that a host country's data privacy laws conflict with the home country's data transfer requirements?

Accepted Answer

Implement binding corporate rules or standard contractual clauses approved by both jurisdictions

Answer

Binding corporate rules and standard contractual clauses are recognized legal mechanisms for lawfully transferring personal data across jurisdictions with differing privacy requirements.

Question 3

An organization operating in 15 countries wants to establish a global anti-bribery policy. Which legislation should serve as the baseline standard due to its extraterritorial reach?

Accepted Answer

The UK Bribery Act 2010

Answer

The UK Bribery Act 2010 has the broadest extraterritorial scope and covers both public and private sector bribery, making it an effective global baseline.

Question 4

What is the primary purpose of conducting a global compliance audit on a recurring basis?

Accepted Answer

To proactively detect regulatory gaps and emerging risks across all operating jurisdictions

Answer

Recurring global compliance audits systematically identify regulatory gaps and emerging risks, enabling proactive remediation before violations occur.

Question 5

When assessing political risk in a country where the organization plans to expand, which factor is LEAST relevant to the HR risk assessment?

Accepted Answer

The country's current exchange rate against the U.S. dollar

Answer

While exchange rates affect financial planning, they are not a direct HR compliance or workforce risk factor compared to labor laws, political stability, and immigration restrictions.

GPHR - Global Professional in Human Resources Practice Test

GPHR - Global Professional in Human Resources Practice Test

GPHR GPHR Risk Management and Compliance Questions and Answers 2