1. What is a good example of an upside risk?

A) A technician proves highly skilled, invaluable, and irreplaceable.
B) A team finishes its project two weeks ahead of the schedule.
C) An organization is a vendor's first major customer for a leading-edge technology system.
D) Union demands for wages, benefits, and work conditions are unrealistic.



2. Which option best defines a contingency plan?

A) Plan that is activated when a risk event occurs
B) Identification of responsible individual when a risk occurs
C) Prioritization of risk management strategies by effectiveness
D) Plan to manage identified secondary risks



3. Which best identifies the outcome of requiring all employees to be trained in business continuity and disaster recovery plans?

A) Increased confidence among organization stakeholders
B) Decreased risk of occurrence of risk events
C) Increased risk of poor public relations
D) Decreased size of risk management budgets



4. Evaluating Risk Management Effectiveness How often should an organization review the components of its enterprise risk management framework?

A) When a new strategy is developed
B) Only if a major incident has occurred
C) At an agreed-upon and regular interval
D) Every three years



5. An employee's ex-husband waits outside her place of work. When she emerges, he begins yelling. She retreats inside the building. The husband attempts to follow but is prevented by a door that locks automatically behind the employee. An HR staff member observes the incident. What action should the staff member take?

A) Call for immediate revision of the organization's security policies.  
B) Recommend that those involved debrief the incident.
C) Write a memo to the HR head, documenting the incident.  
D) None. The security measures worked as intended.



6. A mining company has had a safety program in place for over ten years. It has been effective in decreasing accidents and injuries. What should HR recommend?

A) Review the technology used in the program to see if newer, more effective technology is now available.
B) Leave the program as it is, since it appears to be effective.
C) End the program and develop an entirely new program. Ten years is too long.
D) Consider scaling the program back, since it has apparently changed employee behavior and created a safer workplace.



7. What is the primary purpose of a safety self-audit?

A) To ensure employee compliance with the organization's safety programs
B) To identify roles and responsibilities in the event of an industrial accident
C) To lower workers' compensation insurance premiums for the company
D) To eliminate unsafe acts and environmental factors in the company



8. What is the role of HR when it comes to whistleblowing?

A) Gathering, assessing, and categorizing complaints from whistleblowers and presenting them to upper-level management during annual review cycles
B) Establishing a communication process that allows direct access to upper-level decision makers and protecting whistleblowers from retaliation
C) Seeking to prevent whistleblowing by any means necessary, including reassigning, retraining, or terminating employees found whistleblowing
D) Working with mid-level managers to determine who is whistleblowing and seeking to ensure that the complaints are handled and withdrawn



9. A small but growing organization is just beginning to build its corporate social responsibility (CSR) program. Which objective would be most appropriate for the organization at this stage?

A) To develop an annual auditing tool for recipients of the organization's support
B) To place senior executives on boards of prominent nonprofits in the local area
C) To develop a CSR program that is aligned with the organization's business strategy
D) To find local nonprofits that merit financial support and that share the same values



10. How have corporate social responsibility (CSR) strategies evolved in corporations?

A) The strategies are intended to create visibility for the organization.
B) Values and goals have been redefined based on CSR principles.
C) The strategies are tied to the organization's net earnings.
D) The involvement of less-senior employees is required.