HR Risk Management Flashcards
7 cards from real SPHR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 HR Risk Management flashcards as text
An organization is preparing its business continuity plan (BCP). What is the primary HR contribution to this process?
Answer: Identifying critical workforce roles and ensuring succession and cross-training plans exist
HR's primary BCP role is ensuring human capital continuity by identifying key positions, cross-training staff, and maintaining succession plans.
A company discovers that a manager has been classifying employees as independent contractors to avoid benefit costs. The greatest regulatory risk exposure is to:
Answer: IRS and DOL penalties for worker misclassification, including back taxes and benefits
Worker misclassification exposes employers to IRS back taxes, DOL penalties for wage law violations, and liability for benefits the workers should have received.
The risk treatment option of 'risk avoidance' in HR practice is best illustrated by:
Answer: Deciding not to operate in a jurisdiction with complex employment laws
Risk avoidance means eliminating the activity that creates the risk entirely, such as not entering a market to avoid its regulatory burden.
Which of the following is an example of a leading indicator for workplace safety risk?
Answer: Near-miss reports filed per month
Near-miss reports are leading indicators because they signal hazards before an injury occurs, enabling proactive intervention.
A multinational company is expanding into Germany. Which employment law risk is most distinct from U.S. requirements and must be assessed?
Answer: Co-determination rights requiring works council consultation on HR decisions
Germany's Betriebsverfassungsgesetz requires works councils to be consulted on many HR decisions, a co-determination right with no U.S. equivalent.
A thorough job hazard analysis (JHA) is primarily used to:
Answer: Identify and mitigate task-level safety risks before work begins
A JHA systematically breaks down a job into tasks, identifies hazards in each task, and prescribes controls before work is performed.
When an organization self-insures its workers' compensation program, the key financial risk it assumes is:
Answer: Catastrophic or aggregate losses that exceed the stop-loss coverage threshold
Self-insured employers bear all claims costs directly; the primary financial risk is catastrophic or high-aggregate losses beyond any stop-loss protection.