SPHR HR Risk Management 3

Question 1

An organization is preparing its business continuity plan (BCP). What is the primary HR contribution to this process?

Accepted Answer

Identifying critical workforce roles and ensuring succession and cross-training plans exist

Answer

HR's primary BCP role is ensuring human capital continuity by identifying key positions, cross-training staff, and maintaining succession plans.

Question 2

A company discovers that a manager has been classifying employees as independent contractors to avoid benefit costs. The greatest regulatory risk exposure is to:

Accepted Answer

IRS and DOL penalties for worker misclassification, including back taxes and benefits

Answer

Worker misclassification exposes employers to IRS back taxes, DOL penalties for wage law violations, and liability for benefits the workers should have received.

Question 3

The risk treatment option of 'risk avoidance' in HR practice is best illustrated by:

Accepted Answer

Deciding not to operate in a jurisdiction with complex employment laws

Answer

Risk avoidance means eliminating the activity that creates the risk entirely, such as not entering a market to avoid its regulatory burden.

Question 4

Which of the following is an example of a leading indicator for workplace safety risk?

Accepted Answer

Near-miss reports filed per month

Answer

Near-miss reports are leading indicators because they signal hazards before an injury occurs, enabling proactive intervention.

Question 5

A multinational company is expanding into Germany. Which employment law risk is most distinct from U.S. requirements and must be assessed?

Accepted Answer

Co-determination rights requiring works council consultation on HR decisions

Answer

Germany's Betriebsverfassungsgesetz requires works councils to be consulted on many HR decisions, a co-determination right with no U.S. equivalent.

SPHR - Senior Professional in Human Resources Practice Test

SPHR - Senior Professional in Human Resources Practice Test

SPHR HR Risk Management 3