1. What is the appropriate role for an HR manager in an investigatory interview for a dischargeable offense?

A) Supporter for manager/supervisor of involved department
B) Champion of employee's perspective and position
C) Risk manager for the organization
D) Prosecutor presenting evidence and challenging the employee



2. Which situation that leads to workplace violence can be controlled by an organization?

A) Unstable economy
B) Pressure for increased productivity
C) Low employee self-esteem
D) Domestic problems



3. Understanding the Organizational Risk Context The HR department is instructed to fill a critical management position as quickly as possible. Using multiple agencies will produce more candidates more quickly but will increase the cost by several times. Which critical input should HR seek before deciding how to proceed?

A) Risk tolerance of the organization
B) Job description for the ideal candidate
C) Networking connections and employee referrals
D) Desired applicant-to-hire ratio to indicate success



4. How is a risk control best understood by an organization?

A) Sharing a risk's occurrence or impact and its likelihood
B) Indicating what triggers a specific risk management response
C) Restricting the amount of risk the organization assumes in its dealings
D) Ensuring that employees are following risk management guidelines



5. Which best defines the concept of moral hazard?

A) Intending to behave ethically, an organization violates employment laws or regulations.
B) An organization decides to behave ethically, even though this means a financial loss.
C) A person engages in risky behavior knowing that someone else will absorb any losses.
D) A leader demonstrates poor ethical behavior, leading to poor choices by employees.



6. Management decides that training supervisors to identify and prevent bullying is not necessary, and they do not fund a program budget. What does this illustrate?

A) Risk avoidance management strategy
B) Precedence of global standardization in the organization
C) Organization's risk tolerance  
D) Poor governance



7. Which best demonstrates HR's role in managing organizational risk?

A) Identifying past and current risks and avoiding those risks that affect the HR function
B) Following management's lead in identifying, prioritizing, and managing risks within the HR function
C) Defining the risk level that the organization is willing and able to assume
D) Participating in the identification and management of threats and opportunities across the organization



8. Identify and Analyze Risk Which factors are used when determining an organization's risk level?

A) Awareness of risk management principles at all levels of management
B) Probability of occurrence of a threat and the threat's impact
C) Assessment of third parties such as insurers
D) Likelihood of financial, operational, and reputational risk



9. An organization examines the level of probability for all types of losses to which it may be exposed. What aspect of risk is the organization studying?

A) Risk tolerance
B) Mitigation planning
C) Vulnerability
D) Impact



10. What is the usefulness of a key risk indicator (KRI)?

A) Identifies a global assessment of organizational exposure to risk
B) Establishes greater accountability of risk control measures
C) Provides early warning of organizational risk emergence
D) Assists in preventing the emergence of identified risks