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

Terminate the local HR manager responsible for compliance

Answer

Immediately adopt U.S. labor practices across all EU operations

Answer

Suspend all hiring in the German subsidiary until resolved

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

Ignore the host country's laws since the home country is the headquarters location

Answer

Transfer all employee data to a single server in the home country

Answer

Stop collecting employee data in the host country entirely

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 Sarbanes-Oxley Act

Answer

The Dodd-Frank Wall Street Reform Act

Answer

The Foreign Corrupt Practices Act only applies domestically

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

To identify employees who should be terminated for policy violations

Answer

To satisfy shareholders that the company is profitable

Answer

To reduce headcount in underperforming regions

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

Stability of the local government and likelihood of regime change

Answer

Local labor union strength and collective bargaining requirements

Answer

Restrictions on employing foreign nationals and work permit processes

Question 6

An organization receives a whistleblower report alleging forced labor practices at a third-party supplier in Southeast Asia. Under emerging global supply chain due diligence laws, what is the organization's obligation?

Accepted Answer

Investigate the allegation, document findings, and take corrective action if substantiated

Answer

No obligation exists since the supplier is a separate legal entity

Answer

Immediately terminate the supplier contract without investigation

Answer

Report the allegation only if the supplier is in a country with strict labor laws