1. Which risk strategy is being enhanced when a global HR organization establishes enterprise-wide evacuation procedures and communication plans and creates a website that sits outside the company's firewall for easy access in the event of terrorist act?
A) Terrorist response program B) Emergency response planning C) Risk matrix response D) Business continuity plan
2. Which best exemplifies a risk mitigation approach?
A) An organization chooses not to assign employees to a destabilized country. B) A company uses a thorough substance abuse screening program for pre-hires. C) Workers operating dangerous machinery cannot exceed a set shift length. D) A firm partners with another firm to increase the likelihood of its winning a design bid.
3. Which evaluation method is best for an emergency response plan?
A) Comparing the plan to the previous plan B) Asking for insurance company input C) Conducting a crisis drill D) Having a government agency review the plan
4. What is secondary risk?
A) Risk events that closely follow primary events B) Risk created by a risk management tactic C) Risk events that occur as a result of primary risk occurrence D) Risk that is deemed lower in priority
5. Which method is most effective for controlling hazards and their negative consequences?
A) Control the hazard by enclosing or guarding it at its source. B) Train personnel on awareness and safety procedures to avoid it. C) Abate and eliminate the hazard from the workplace. D) Require protective equipment to shield personnel against the hazard.
1. Right Answer: B Explanation: An emergency response plan describes the actions to be taken in the event of a natural disaster, emergency evacuation, terrorist attack, or any other incident that disrupts the normal work pattern. Emergency response plans tell employees what to do. The organization's easy access website is an attempt to guide employees during the chaos.
2. Right Answer: C Explanation: By limiting the length of the work shift, the company mitigates the risk of accidents caused by fatigue and inattention. This is aimed at reducing the probability of the occurrence of accidents, at least for this cause. Decisions not to assign or not to hire are risk avoidance measures. The partnering strategy is a way of enhancing upside risk.
3. Right Answer: C Explanation: A simulated crisis in which the plan is tested will alert the company to changes that need to be made and is the best way to see how the plan performs.
4. Right Answer: B Explanation: Secondary risk refers to risks that are created by the risk management strategy itself. Before they are implemented, strategies must be analyzed to determine if they present secondary risks.
5. Right Answer: C Explanation: The most effective way to control hazards and their consequences is to engineer them out of the workplace. For example, a sawmill may design the cutting process so that the level of sawdust is acceptable.
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