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SHRM-CP WORKPLACE Questions - Part 17
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. Β
B) Recommend that those involved debrief the incident.
C) Write a memo to the HR head, documenting the incident. Β
D) None. The security measures worked as intended.
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. Β
B) Recommend that those involved debrief the incident.
C) Write a memo to the HR head, documenting the incident. Β
D) None. The security measures worked as intended.
1. Right Answer: B
Explanation: An upside risk is an opportunity that arises out of uncertainty about outcomes. Completion date is uncertain, but early project completion is an opportunity: an uncertainty that has a positive outcome.
2. Right Answer: A
Explanation: A contingency plan is a protocol (predefined actions) that is activated when a risk event occurs, for example, activation of a severe weather work schedule.
3. Right Answer: A
Explanation: Preparation for crises and business interruptions demonstrates quality management practices and would boost stakeholder confidence and public image. It would not affect the likelihood of occurrence, nor would it decrease risk management budgets.
4. Right Answer: C
Explanation: Components of an organization's risk management framework should be reviewed at an agreed-upon and regular interval as well as after major incidents.
5. Right Answer: B
Explanation: After-action debriefs are a good way to examine the effectiveness of a specific risk response strategy, presenting an opportunity for learning and improvement.
Explanation: An upside risk is an opportunity that arises out of uncertainty about outcomes. Completion date is uncertain, but early project completion is an opportunity: an uncertainty that has a positive outcome.
2. Right Answer: A
Explanation: A contingency plan is a protocol (predefined actions) that is activated when a risk event occurs, for example, activation of a severe weather work schedule.
3. Right Answer: A
Explanation: Preparation for crises and business interruptions demonstrates quality management practices and would boost stakeholder confidence and public image. It would not affect the likelihood of occurrence, nor would it decrease risk management budgets.
4. Right Answer: C
Explanation: Components of an organization's risk management framework should be reviewed at an agreed-upon and regular interval as well as after major incidents.
5. Right Answer: B
Explanation: After-action debriefs are a good way to examine the effectiveness of a specific risk response strategy, presenting an opportunity for learning and improvement.
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