SPHR HR Risk Management 5

Question 1

An organization experiences a ransomware attack that encrypts all HR records. From a risk management perspective, this event most directly represents which type of risk materializing?

Accepted Answer

Operational risk from a cybersecurity control failure

Answer

A ransomware attack exploiting inadequate cybersecurity controls is a textbook operational risk event, where an internal process or system failure causes disruption.

Question 2

The FMLA's 'key employee' exception allows an employer to deny restoration to which category of employee?

Accepted Answer

A salaried employee among the highest-paid 10% whose restoration would cause substantial and grievous economic injury

Answer

FMLA permits employers to deny reinstatement to 'key employees' — salaried employees in the top 10% of earners — if restoration would cause substantial and grievous economic injury to the employer.

Question 3

A company is assessing the risk of a hostile work environment claim. Which factor most significantly increases legal exposure?

Accepted Answer

Management was aware of the harassing conduct and failed to take prompt corrective action

Answer

Employer liability for hostile work environment is greatly increased when management knew or should have known about the conduct and failed to act promptly.

Question 4

Which scenario best illustrates the risk management concept of 'risk transfer' in HR?

Accepted Answer

Purchasing employment practices liability (EPL) insurance to shift the financial burden of claims to an insurer

Answer

Purchasing EPL insurance transfers the financial consequences of employment-related claims from the organization to the insurer.

Question 5

When evaluating third-party background check vendors, an employer must ensure the vendor complies with which federal law to minimize legal risk?

Accepted Answer

The Fair Credit Reporting Act (FCRA)

Answer

The FCRA governs consumer reports used for employment purposes, requiring specific disclosures, candidate consent, and adverse action procedures from both the employer and the vendor.

SPHR - Senior Professional in Human Resources Practice Test

SPHR - Senior Professional in Human Resources Practice Test

SPHR HR Risk Management 5