Risk Management & Mitigation Flashcards
7 cards from real CSP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Risk Management & Mitigation flashcards as text
A staffing firm learns that a client has misclassified placed workers as independent contractors to avoid payroll taxes. What is the firm's greatest exposure?
Answer: IRS joint liability for unpaid employment taxes and penalties
Staffing firms that knowingly participate in or benefit from worker misclassification can face joint IRS liability for unpaid employment taxes.
Which element is most essential in a staffing firm's written safety orientation program for temporary workers?
Answer: Site-specific hazard information, emergency procedures, and worker rights under OSHA
OSHA's Temporary Worker Initiative requires that temps receive site-specific hazard training covering the actual risks they will encounter.
When a staffing firm's placed worker is involved in a workplace fatality, which agency is most likely to conduct the primary investigation?
Answer: The Occupational Safety and Health Administration (OSHA)
OSHA has primary jurisdiction over workplace fatality investigations and will typically cite both the staffing firm and the host employer.
A staffing firm wants to limit its liability when a client terminates a placed worker. Which contract provision offers the most protection?
Answer: An indemnification clause requiring the client to defend and hold harmless the staffing firm for client-directed terminations
An indemnification clause obligates the client to defend the staffing firm against claims arising from the client's own termination decisions.
Under OSHA's multi-employer citation policy, a staffing firm may be cited as a 'sending employer' even if it did not control the hazard. What is the key factor that determines this liability?
Answer: Whether the staffing firm knew or should have known of the hazard and failed to take feasible corrective action
OSHA cites sending employers when they had actual or constructive knowledge of a hazard and failed to take corrective steps within their control.
A staffing firm is considering entering the healthcare staffing market. Which risk is uniquely elevated in this sector compared to general clerical staffing?
Answer: Professional liability exposure from credential verification failures for clinical roles
Healthcare staffing carries heightened professional liability risk because placing a clinician with false or unverified credentials can directly harm patients.
Which risk mitigation strategy most effectively addresses the risk of data breaches involving candidate personal information held by a staffing firm?
Answer: Implementing encryption, access controls, and a documented incident response plan
Encryption, access controls, and a documented incident response plan form the foundation of a compliant data security program under state and federal privacy laws.