Workplace I

Question 1

What globalization is?

Answer 1

Understanding the global forces-political, economic, social, technological, legal, and environmental (PESTLE) - that have shaped and driven globalization

Question 2

Global forces require careful analysis

Answer 2

HR should strive to understand which globalization events, forces, and trends are significant for a given organization and for HR responsibilities within that organization.

Question 3

Global forces should be viewed in terms of their connections

Answer 3

HR should understand the unique ways in which each significant global force, event, or trend is affecting:

1. The parent organization’s home office and its various subsidiary or host countries
2. Its industry and competitive landscape
3. The organization’s overall goals and strategies
4. The role HR must play if the parent organization is to maximize the benefits and minimize the costs of that force, event, or trend.

Question 4

Diaspora

Answer 4

A mass migration of a group from its homeland to multiple destinations-

Question 5

Demographic dichtomy

Answer 5

The workforce in emerging economies is becoming disproportionately young, while the workforce in developed economies is rapidly aging.

Question 6

Hyperconnectivity

Answer 6

Increasing digital interconnection of people and things anytime and anyplace.

Question 7

Global organization

Answer 7

Organization that can “effectively leverage and capitalize upon its global footprint”.

Question 8

Global organization : 4 structural/strategic components

Answer 8

1. physical dispersion- the organization operates in multiple countries
2. Diversity of thought, people,and culture that is actively leveraged by a strategic objective
3. Unified through a clear single organizational identity
4. Global for a reason; self-aware of their global reach and leveraging geographic and cultural diversity to achieve success as they have defined it.

Question 9

Push factors into globalization

Answer 9

1. A need for new markets: exhausted market opportunities in their home countries.

Question 10

Push factors into globalization

Answer 10

2. Shortfalls in natural resources and talent supply:

Question 11

Push factors into globalization

Answer 11

3. Government Policies: Lower taxes in another country. Example: U.S. buying companies in Ireland bc of less taxes.

Question 12

Push factors into globalization

Answer 12

4. Trade agreements: Trade agreements increase competition fro domestic firms as foreign competitors enter the market.

Question 13

Push factors into globalization

Answer 13

5. Globalized supply chain:

Question 14

Pull factors into globalization

Answer 14

1. Greater strategic control: organizations have found that they can exert more control over their businesses by developing and a multinational presence.

Question 15

Pull factors into globalization

Answer 15

2. Government policies that promote outward foreign investment:

Question 16

Pull factors into globalization

Answer 16

3. Trade agreements: Opening markets and promoting workforce mobility.

Question 17

Global Integration (GI)

Answer 17

Emphasizes consistency of approach, standardization of processes, and a common corporate culture across global operations.

Question 18

Local Responsiveness (LR)

Answer 18

Emphasizes adapting to the needs of local markets and allows subsidiaries to develop unique products, structures, and systems.

Question 19

Four drivers of globalization strategy

Answer 19

Market: Homogeneity of customer needs, availability of global distribution networks, opportunities for share marketing

Question 20

Four drivers of globalization strategy

Answer 20

Cost: economies of scale, transportation costs, R & D costs, transferable technology advantages

Question 21

Four drivers of globalization strategy

Answer 21

Governmental: Trade policies, technical standards and requirements, regulatory climates

Question 22

Four drivers of globalization strategy

Answer 22

Competitive: Extent and methods of globalization by industry competitors

Question 23

International Strategy

Answer 23

Briscoe, Schuler, and Tarique identify international organizations as low in global integration-in that there is little pressure to increase efficiency and also low in local responsiveness- that there is little advantage in tailoring products or services to individual foreign markets.

Question 24

Multidomestic Strategy

Answer 24

Organizations with subsidiaries in multiple countries that operate with a fair degree of independence from each other and from headquarters, which remains in the home country. The activities conducted in the subsidiaries can be significant and varied, ranging from R&D to operations and sales.

Question 25

Global Strategy

Answer 25

A strategy that is high in GI but low on the LR scale. The headquarters ( which may or may not be in the originating country) maintains a strong relationship with each subsidiary, integrating operations to take advantage of conditions in subsidiary markets, integrating operations to take advantage of conditions in subsidiary markets, such as inexpensive labor or materials, and standardizing its products or services. subsidiaries have less freedom to adapt to local markets.

Question 26

Transnational organizational structure (TNC)

Answer 26

simultaneous pressures to standardize and localize. Locates its value chain activities wherever it is most advantageous. Requires that subsidiaries have the autonomy to adapt to local cultures and to respond quickly to opportunities and competitive threats.

Question 27

Transnational organizational structure (TNC) (Glocalization)

Answer 27

An organization with a strong global image but an equally strong local identity. high ranking in both GI and LR

Question 28

International

Answer 28

A firm exports a product or service to foreign countries. The company may open production facilities or service centers, but the product/service, processes, and strategy are developed in the home country.

Question 29

Multidomestic

Answer 29

The organization is a decentralized portfolio of subsidiaries. Goals and strategies are developed locally because of competitive demands. Knowledge is shared on a local rather than global level.

Question 30

Global

Answer 30

The firm views the world as a single, global market and offers global products that have little or no national variation or that have been designed with customizable elements.Strategy, ideas, and processes emanate from headquarters.

Question 31

Transnational

Answer 31

The firm locates its value chain activities in the most advantageous geographic locations. Subsidiaries are allowed to adapt global products and services to local markets. Best practices and knowledge are shared throughout the organization.

Question 32

Globalization (Ethnocentric)

Answer 32

Headquarters maintains tight control over subsidiaries, who are expected to follow the strategic pattern, values, policies, and practices expressed by headquarters. There is “one best way.”

Question 33

Globalization (Polycentric)

Answer 33

subsidiaries are allowed a large measure of independence as long as they are profitable. They may plot their own paths based on the business and cultural contexts of their countries. There are “many best ways.”

Question 34

Globalization (Regiocentric)

Answer 34

Subsidiaries are grouped into regions (such as Europe, North America, or Asia-Pacific). Strategic coordination is high within the region but not as high between the region and headquarters.

Question 35

Globalization (Geocentric)

Answer 35

Subsidiaries are neither satellites taking orders nor independent bodies setting their own course.Headquarters and subsidiaries are participants in a network, each contributing its unique expertise.There is essentially “a team way”, transcending national borders.

Question 36

Moving work consist of 4 sections

Answer 36

1. Outsourcing
2. offshoring
3. onshoring
4. near-shoring

Question 37

Outsourcing

Answer 37

Practice where a company transfers portions of work to outside suppliers rather than completing it internally.

Question 38

Offshoring

Answer 38

The practice of relocating processes or production to another country. Common reasons for offshoring include:

1. lower costs (lower wages, less expensive facilities)
2. More favorable economic climate for corporate taxation
3. Financial incentives ( direct cash payments, low-interest loans)

Question 39

Risks with offshoring

Answer 39

1. Cultural differences
2. Distance issues ( different time zones and getting remote teams to work together)
3. High turnover rates
4. Problems in quality control
5. Technical degrees that do not reliably indicate actual technical skills.
6. Language issues

Question 40

Onshoring

Answer 40

Relocation of business processes or production to a lower-cost location inside the same country as the business.

Question 41

Near-Shoring

Answer 41

Refers to a company contracting a part of its business processes or production to an external company located in a country that is relatively close ( within its own region).

Question 42

Near-Shoring

Answer 42

Neighboring countries are often bound by similar financial and legal constraints or trade agreements that provide social and economic stability within a region. Closer in proximity and are likely to share similar cultural values.

Question 43

Skills needed for global HR: Develop a strategic view of the organization

Answer 43

Understand how the entire organization creates value
Determine ways to benefit from globalization.
Understand the external context in which the firm operates.
Identify global and local trends.

Question 44

Skills needed for global HR: Develop a global organizational culture

Answer 44

1. Provide training that improves cultural awareness and adaptability.
2. Develop processes to promote communication and the capturing and sharing of knowledge and experiences.

Question 45

Skills needed for global HR: Secure and grow a safe and robust talent supply chain

Answer 45

Ensure a supply of leaders who are globally competent.

Question 46

Skills needed for global HR: use and adapt HR technology

Answer 46

Increase the efficiency of HR programs and integration with the organization’s IS.

Question 47

Skills needed for global HR: Develop meaningful metrics

Answer 47

Take a systematic and disciplined approach to measuring and operationlizing strategic goals.

Question 48

Skills needed for global HR: Develop policies and practices to manage risks

Answer 48

Provide for the health, safety, and security of employees
Protect the physical assets of the organization
Protect the intellectual property of the company, such as copyrighted material or patented devices or processes.

Question 49

Steps on auditing a global HR audit: Assemble a global compliance audit project team

Answer 49

1. Involve headquarters, foreign and local human resources, in-house legal and compliance functions.
2. Consider involving the corporate audit function.
3. Consider tapping outside counsel with attorney/client privilege or at least involving an outside international HR consultant.

Question 50

Steps on auditing a global HR audit: Define the audit context

Answer 50

1. Establish the audit context (Preparing for a corporate restructuring, launching a merger or acquisition, responding to a lawsuit/government investigation, addressing specific employment law challenges or compliance with bribery and insider trading laws, or simply toughening compliance through a robust HR practices check-up.

Question 51

Steps on auditing a global HR audit: Define the audit project scope

Answer 51

1. Determine the audit parameters by assessing factors such as:
   Which countries are involved?
   Should the audit focus on compliance with laws, collective agreements, corporate policies, best practices-or with all of these?

Question 52

Steps on auditing a global HR audit: Create a master audit checklist template

Answer 52

Craft a master global audit template or compliance checklist for the audit. Include all topics consistent with the audit project scope; exclude all other topics that are irrelevant and outside the scope.

Question 53

Steps on auditing a global HR audit: Align local audit checklists off the master

Answer 53

HR-context rules differ significantly across jurisdictions.

Localize topics from the master template checklist or questionnaires checklist for each affected jurisdiction.

Question 54

Steps on auditing a global HR audit: Conduct the audit

Answer 54

1. Will headquarters auditors travel to sites or can tasks be delegated to local HR staff?
2. Can local employees be interviewed or does local law protect them from cooperating/participating?

Question 55

Steps on auditing a global HR audit: Report and implement remedial measures

Answer 55

1. Summarize the HR compliance audit findings.
2. Propose specific remedial measures or fixes
3. Determine how there will be follow-up to check that the fixes actually get implemented locally.

Question 56

Two aspects to completion for a global assignment process

Answer 56

Repatriation: Involves reintegrating the employee back into the home country after an international assignment. It includes adjustment to the new job and readjustment to the home culture and conditions (Including any potential reverse culture shock)

Question 57

Two aspects to completion for a global assignment process

Answer 57

Redeployment: Does not always involves repatriation. An assignee’s next assignment can be back in the home country, in a different global location, or in a new location or new position in the current host country.

Question 58

Diversity

Answer 58

It is a move from viewing diversity defensively as a matter of legal or ethical compliance - to viewing it strategically as a value asset that an organization can use to compete.

Question 59

The principle of equal opportunity

Answer 59

Where the employer needs to provide a level playing field for all groups and minorities without discrimintation

Question 60

The principle of reservation

Answer 60

Where the laws mandate a percentage quota or other special considerations for specified minority or ethnic groups

Question 61

Affirmative action

Answer 61

Where the laws mandate a percentage quota or other special considerations for specified minority or ethnic groups

Question 62

Benefits and costs of diversity

Answer 62

Improved creativity and innovation: This benefit derives from having groups with multiple perspectives, life experiences, and learning and problem-solving styles.

Question 63

Diversity: Recruitment & Retention

Answer 63

Recruitment gaps and challenges may be very different for each local subsidiary of an organization.Developing an inclusive and diverse workforce enhances the employer’s ability to attract high-potential talent in minority groups

Question 64

Market Strengths: Diversity

Answer 64

Improves an organization’s ability to understand the perspectives and needs of its customer segments, to identify and reach new market segments, and to develop new products that anticipate and meet those needs

Question 65

Branding: Diversity

Answer 65

Positive image of being a diverse, inclusive organization can be a marketing advantage and selling point, helping the organization to connect and identify a brand with diverse markets.

Question 66

Diversity: Global integration and local differentiation

Answer 66

Local employees add greater awareness of local laws and regulations and business models and practices.

Question 67

Downside to a diverse workplace:

Answer 67

Teams that are fragmented, nonproductive, and unable to arrive at decisions in a timely manner

Question 68

Downside to a diverse workplace: Increased costs for training

Answer 68

Training in cultural awareness, communication, and team building may be needed.

Question 69

Downside to a diverse workplace: Increased costs and time frames for recruitment efforts

Answer 69

A broader diversity-based talent search often requires new resources, procedures, and validation measures.

Question 70

Downside to a diverse workplace: Increased management time

Answer 70

More time is needed to monitor, provide support, and negotiate solutions.

Question 71

Downside to a diverse workplace: Difficulties in communication

Answer 71

Challenges may be due to differences in language, culture, and communication styles

Question 72

Downside to a diverse workplace: Diffuse or blurred branding, image, and marketing efforts

Answer 72

Targeted marketing efforts that attempt to focus on specific diversity identity groups can, over time and by cumulative effect, start to blur the core brand image.

Question 73

Downside to a diverse workplace: The impact of the “stereotype threat”

Answer 73

When managers or coworkers rely on biases or stereotypes in the workplace, the performance of targeted individuals, and the chances for successful teamwork, are diminished.

Question 74

Downside to a diverse workplace: Global integration and local differentiation

Answer 74

There may be difficulties in aligning organizational diversity policies with the rules, regulations, and practices of the diverse cultures in which the organization operates.

Question 75

Downside to a diverse workplace:

Answer 75

Up-front costs for designing and implementing a diversity strategy and programs

Question 76

Four-layer model of diversity: Personality

Answer 76

At the center are matters unique to each individual-style and characteristics, preferences, perceptions, behavioral predispositions, cognitive and learning styles- all of which are influenced by, and in turn influence, the successive outer layers.

Question 77

Four-layer model of diversity: Internal dimensions

Answer 77

These are aspects of self, often assigned at birth, over which we have little control. They include gender, sexual orientation, physical abilities, ethnicity, race, and age.

Question 78

Four-layer model of diversity: External dimensions

Answer 78

These are the results of life experiences and choices. They include geographic location, income, personal habits, recreational habits, religion, education, work experiences, appearance, marital status, and parental status.

Question 79

Four-layer model of diversity: Organizational dimensions

Answer 79

These are similarities and differences based on an individual’s position in the organization. They include functional level or classification; content or field of work; division, department, unit or group; seniority; work location; union affiliation; and management status

Question 80

Ways to increase diversity

Answer 80

1. Voluntary training (not mandatory)
2. Cross-training (to increase management exposure to people from different groups).
3. College recruitment targeting women and minorities
4. Mentoring for women and minorities
5. Diversity task forces (to promote social accountability)
6. Diversity managers (to support transparency in recruiting and promotion decisions)

Question 81

Executive Commitment to a D&I strategy

Answer 81

Without executive-level leadership serving as role models and advocates, D&I cannot become a priority or demand resources.

Question 82

Preliminary assessment to a D&I strategy

Answer 82

A successful strategy must be data-driven, starting with a detailed assessment of the organization’s current state.

Question 83

Preliminary assessment to a D&I strategy

Answer 83

Purpose is to identify current needs in order to set corresponding priorities, goals, and objectives. Provide benchmarks against which the success or failure of subsequent D&I strategies can be measured.

Question 84

Preliminary assessment to a D&I strategy: Data that needs to be included

Answer 84

1. Demographic data on the organization workforce and the larger labor force and marketplace.
2. Turnover statistics and other indicators of the rates at which employee move up in, or out of, the organization.

Question 85

Preliminary assessment to a D&I strategy: Data that needs to be included

Answer 85

3. Existing employee opinion and customer satisfaction surveys.
4. Surveys and focus groups to determine employee attitudes about how inclusively they are treated.

Question 86

Preliminary assessment to a D&I strategy: Data that needs to be included

Answer 86

5. Leadership interviews to determine their goals, expectations, and concerns regarding D&I initiatives.

Question 87

Infrastructure creation to a D&I strategy

Answer 87

There must be a designated group whose sole responsibility is to guide, oversee, and champion the organization’s D&I initiative. There should also be a mechanism enabling everyone in the organization to have input into the process.

Question 88

Diversity council

Answer 88

A task force created to define the D&I imitative and guide the process.

Question 89

Diversity council responsibility

Answer 89

1. Setting goals and priorities. (Creating a formal D&I vision and mission statements)

Question 90

Diversity council responsibility

Answer 90

2. Ensuring alignment with core business strategies.
3. Identifying obstacles and opportunities.
4. Recommending actions.
5. Monitoring the process
6. Collecting data and evaluating results.

Question 91

Employee Resource Group

Answer 91

Voluntary group for employees who share a particular diversity dimension (race, religion, ethnicity, sexual orientation, etc.).

Question 92

Criteria for effective employee resource groups

Answer 92

Racial/gender breakdown of groups.
Percentage of top executives who are sponsors of groups.
Whether groups are used for recruitment, onboarding of new employees, talent development, marketing, mentoring, and diversity training

Question 93

D&I imitative: Recruitment, sourcing, hiring

Answer 93

Adding special recruitment initiatives (targeted job fairs, leveraging alliances with outside educational and community organizations, outreach programs, leveraging ERG networking, etc.)

Question 94

D&I imitative: Recruitment, sourcing, hiring

Answer 94

Training recruiters, interviewers, and hiring managers to reduce biases and look beyond existing channels and sources.

Question 95

D&I imitative: Onboarding, Retention

Answer 95

This is where a focus on the “inclusion” aspects of D&I can have a real financial impact on an organization

Question 96

D&I imitative: Promotion, Career Development

Answer 96

One of the most critical D&I challenges is increasing diversity in an organization’s upper management levels.

Question 97

D&I imitative: Compensation and benefits

Answer 97

Beyond evaluating whether compensation is equitable across all races, genders, etc., and making necessary adjustments in compensation criteria, creating targeted benefits can help attract and retain members of target groups (for example, flextime and on-site day care can help attract women and younger workers).

Question 98

D&I imitative: Supply Chain Management and Relations

Answer 98

An integral part of any organization’s diversity program is to ensure that it promotes diversity outside of the company. EX:One way organizations accomplish this goal is through supplier diversity programs that support minority- and women-owned businesses.

Question 99

What must always be the first step in developing and implementing a diversity and inclusion strategy?

Answer 99

Make an organization-specific business case for a diversity and inclusion strategy to top-level leadership to secure executive commitment.

Question 100

What are the three types of training that are needed for a comprehensive diversity and inclusion learning and development program?

Answer 100

Diversity awareness courses, diversity management courses, professional development opportunities

Question 101

HR has 4 powerful tools at its disposal in influencing managerial practices and developing new managerial skills: the 4 Ts (travel, teams, training, and transfers)

Answer 101

the 4 Ts (travel, teams, training, and transfers)

Question 102

Travel:

Answer 102

Of the respondents in the Black, Morrison, and Gregersen study, 80% stated that working and living abroad was the most influential development activity they had ever experienced.

Question 103

Travel

Answer 103

Short-term assignments may help managers and employees gain experience, expand awareness and appreciation of different places and cultures, and become more visible and valuable within the organization.

Question 104

HR must ensure that each policy has been devised and is implemented so as to apply equitably and fairly across all the dimensions of diversity

Answer 104

gender and sexual orientation, race, ethnicity, culture, religion, etc. and across all functions IT, finance, administration, manufacturing, etc. and all locations

Question 105

What are the three aspects of organizational behavior that a diversity strategy must be able to change?

Answer 105

Individual attitudes and behaviors, managerial skills and practices, and organizational values and policies.

Question 106

International Organization for Standardization (ISO)

Answer 106

Sees risk management as a strategic and enterprise challenge.

Question 107

ISO 31000 approach “Risk Management: Principles and Guidelines”

Answer 107

Strategy formulation is the first phase. During this phase, an organization and its functions must understand their internal and external environments, define their risk appetite, and set risk goals.

Question 108

1st stage of risk management is to understand where the organization positions itself regarding risk.

Answer 108

What types of risks must it manage? How well is it equipped to manage risk? How much risk can the organization tolerate, and how much is it willing to assume?

Question 109

In developing Standard 31000

Answer 109

ISO was building on the earlier work of the Committee of Sponsoring Organizations of the Treadway Commission (COSO)

Question 110

COSO defines risk

Answer 110

having an adverse effect

Question 111

ISO defines risk

Answer 111

The effect of uncertainty on objectives

Question 112

Barriers to risk management are primarily

Answer 112

structural, cognitive, and cultural

Question 113

Structural risk management

Answer 113

Organizations that are structured in a silo fashion tend to respond to risk in an operational, rather than strategic manner. They overlook dependencies within the organization that can create risks and/or interfere with proactive risk management.

Question 114

Structural risk management

Answer 114

There are few channels for communication about risk and monitoring of practice that span the entire organization.

Question 115

Cultural risk management

Answer 115

An organization must create risk awareness and risk intelligence throughout the organization

Question 116

Kaplan and Mike’s categories of risk: Internal and preventable

Answer 116

These risks come from within the organization and could include violations of ethics and failures in routine processes.

Question 117

Kaplan and Mike’s categories of risk: Strategy

Answer 117

This is desirable uncertainty that an organization willingly accepts when it commits to a strategy - For example: uncertainty whether loans can be repaid or employees will be fully productive.

Question 118

Kaplan and Mike’s categories of risk: External

Answer 118

These sources of uncertainty are outside the organization and beyond its control. They would include changes in the economy or laws and regulations, disruptive technologies, and availability of trained employees

Question 119

The ERM Framework divides risk into 4 categories: Strategy

Answer 119

Risks that affect the organization’s ability to achieve its objectives

Question 120

The ERM Framework divides risk into 4 categories: Operations

Answer 120

Risks that affect the myriad ways in which the organization creates value.

Question 121

The ERM Framework divides risk into 4 categories: Financial Reporting

Answer 121

Risks that affect the accuracy and timeliness of information about the organization’s financial performance and condition

Question 122

The ERM Framework divides risk into 4 categories: Compliance

Answer 122

Risks associated with meeting the requirements of laws and regulations

Question 123

Risk categories: Strategy

Answer 123

Sources of risk: Investment, Innovation, Competitve behavior, Consumer behavior, partners, Employee enagagement and diversity

Question 124

Risk categories: Strategy

Answer 124

HR Responsibilities: Workforce management, Talent management, employee engagement, management of HR function, Continuity of HR function.

Question 125

Risk categories: Strategy

Answer 125

HR Process Areas: Recruitment, Succession Planning, Training and development, employee communication, reward systems.

Question 126

Risk categories: Operations

Answer 126

Sources of risk: Sustainability, Supply Chain, health and safety, data privacy, process efficiency and effectiveness

Question 127

Risk categories: Operations

Answer 127

HR responsibilities: Duty of care and Performance management

Question 128

Risk categories: Operations

Answer 128

HR Process areas: Workplace safety, global assignments, employee relations, benefits administration

Question 129

Risk categories: Reporting

Answer 129

Sources of risk: Growth of assets and misappropriation of assets

Question 130

Risk categories: Reporting

Answer 130

HR responsibilities: Measuring and reporting workforce data

Question 131

Risk categories: Reporting

Answer 131

HR process area: Technology, data privacy, analytics and decision support

Question 132

Risk categories: Compliance

Answer 132

Sources of risk: Workplace requirements, Reporting requirements

Question 133

Risk categories: Compliance

Answer 133

HR responsibilities: Compliance with international, country, and local laws and with organizational poliies

Question 134

Risk categories: Compliance

Answer 134

HR processes: Filing of required reports, communication with employees

Question 135

Risk appetite and risk tolerance

Answer 135

The amount of uncertainty the organization is willing to pursue or to accept to attain its risk management goals.

Question 136

What is risk?

Answer 136

Effect of uncertainty on achieving objectives

Question 137

What are the categories of risk in the COSO ERM Framework?

Answer 137

Strategy, operations, financial reporting, compliance

Question 138

What element is contained in the ISO risk management framework?

Answer 138

Visible management support of risk management processes

Question 139

Duty of care

Answer 139

Organizations should take all steps that are reasonably possible to ensure the health, safety, and well-being of employees and protect them from foreseeable injury.

Question 140

Risk Level=

Answer 140

Probability of occurrence X magnitude of impact

Question 141

Risk scorecard

Answer 141

A tool to gather individual assessments of various characteristics of risk (frequency of occurrence, degree of impact, loss, or gain for the organization; degree of efficacy of current controls)

Question 142

Risk matrix

Answer 142

A grid in which the horizontal axis represents the probability that an event will occur and the vertical axis related to the severity of the impact on the organization or function if the event occurs.

Question 143

Key Risk Indicators (KRIs)

Answer 143

Provide an early signal of increasing risk exposures in the various areas of an enterprise. These signals could call for a change in the way risks are prioritized for management or in the management actions themselves.

Question 144

What is a benefit of the mutually exclusive, completely exhaustive (MECE) approach to risk management?

Answer 144

Confidence that all risks have been identified and analyzed

Question 145

A risk is analyzed as likely to emerge slowly and likely to occur. According to the PAPA evaluation model, how would this risk be prioritized?

Answer 145

Adapt

Question 146

What is the purpose of a risk register?

Answer 146

To increase transparency and accountability in risk management processes.

Question 147

Risk management tactics: Avoidance

Answer 147

The decision not to become involved in or action to withdraw from a risk situation.

Question 148

Risk management tactics: Reduction

Answer 148

The actions taken to lessen the probability, negative consequence, or both associated with a risk.

Question 149

Risk management tactics: Sharing

Answer 149

Sharing with another party the burden of loss or benefit of gain for a risk. Risk sharing can be done through insurance or other agreements.

Question 150

Risk management tactics: Retention

Answer 150

The acceptance of the burden of loss or benefit of gain for a risk.

Question 151

Residual risk

Answer 151

The amount of uncertainty that remains after all risk management efforts have been exhausted.

Question 152

HR’s risk management performance targets should

Answer 152

Be Strategically focused. Measurement should focus on performance that directly affects achieving the strategic goal.

Question 153

HR’s risk management performance targets should

Answer 153

Combine activities and results. Metrics related to activities show efficiency, while metrics related to results show effectiveness. The number of workplace inspections conducted by HR demonstrates HR’s efficiency in deploying this prevention. The number of workplace accidents occurring within a period demonstrates the strategy’s effectiveness.

Question 154

HR’s risk management performance targets should

Answer 154

Combine lagging and leading metrics. Lagging metrics look backward at what has been accomplished, while leading metrics measure performance that will affect results in the future.

Question 155

Modifying risks related to noncompliance

Answer 155

1. Efforts to educate the organization about laws and regulations.
2. Implementation of a whistleblowing policy and system.
3. Incidence of noncompliance reports
4. Incidence and levels of fines.

Question 156

Instilling risk management principles in the organization’s members and processes

Answer 156

1. Workshops delivered to boards, leadership, and managers.
2. Development of procedures for implementing risk review in all projects.
3. Compliance with the organization’s risk management policy (the % of project plans that include a risk management section)

Question 157

Contingency plan

Answer 157

Is a protocol that an organization implements when an identified risk event occurs

Question 158

Crisis management Process: Manage Risk

Answer 158

Crisis management seeks to identify risks that can result in sudden and extensive harm to facilities and/or the workforce and therefore in significant interruption and risk to the business.

Question 159

Crisis Management Process: Develop Contingency Plans

Answer 159

Goal of immediate security for employees, company assets, and all stakeholders; compliance with local laws and regulations; documentation and reporting as required; and follow-up.

Question 160

HR involvement in contingency plans

Answer 160

1. Policies: HR can help define and communicate employee policies aimed at avoiding or mitigating risks.

Question 161

HR involvement in contingency plans

Answer 161

2. Evacuation and relocation: HR can maintain current and detailed employee rosters so employees’ locations can be confirmed after an evacuation.

Question 162

HR involvement in contingency plans

Answer 162

Communication: HR can use employee contact information to program automated outgoing and incoming communication systems.

Question 163

HR involvement in contingency plans

Answer 163

Training: Employees must receive training in policies, their roles int he event of a crisis, and the use of special equipment.

Question 164

HR involvement in contingency plans

Answer 164

Test and implement plans: Plan should be tested in their entirety or by components. Example: evacuation drills in buildings can be conducted.

Question 165

HR involvement in contingency plans

Answer 165

Debrief and learn: Knowledge from testing and actual crises can be used to strengthen future responses.

Question 166

What is secondary risk?

Answer 166

Risk caused by a risk management tactic

Question 167

An organization decides that it cannot effectively address the risk of a flood and takes no further action to manage this risk. What is this type of risk called?

Answer 167

Residual risk

Question 168

Debrief team asks question such as:

Answer 168

1. What happened, why did it happen, and what were the results of the event?
2. What did we do in response?
3. Did we follow the plan?
4. What were the results relative to the requirements for managing this risk?

Question 169

Debrief team asks question such as:

Answer 169

5. What unexpected events (beneficial or harmful) occurred? What do they suggest about our current plan or process?
6. How well did we communicate with each other, with external agencies, and with employees?

Question 170

Debrief team asks question such as:

Answer 170

7. What could we have done differently to improve our handling of this risk?

Question 171

Whistleblowing

Answer 171

The reporting of the organization’s violations of policies and processes by employees, applies very directly to risk management

Question 172

Risks HR should always evaluate: Talent Acquisition

Answer 172

1. Are employment laws and regulations observed to avoid potential discriminatory practices?
2. Is the screening of potential applications thorough to help ensure the hiring of suitable candidates?

Question 173

Risks HR should always evaluate: Onboarding and Assimilation

Answer 173

1. Are sufficient orientation and training provided to new hires?

Question 174

Risks HR should always evaluate: Training and development

Answer 174

Is sufficient training provided to current employees assuming new responsibilities or positions?

Question 175

Risks HR should always evaluate: Occupational safety and health

Answer 175

Are safe working conditions provided?

Is staff adequately trained in safety procedures?

Question 176

Risks HR should always evaluate: Occupational safety and health

Answer 176

Is appropriate safety clothing and equipment provided on the job?
Are safety checks (ex: fire drills and emergency evacuations) conducted regularly? Are they compliant with local codes?

Question 177

Risks HR should always evaluate: Employee conduct

Answer 177

1. Are job descriptions clearly written?
2. Are orientation and/or training comprehensive and adequate?
3. Is supervision adequate?
4. Is an employee handbook with comprehensive policies and procedures in place?
5. Are employees well-informed and trained in policies and procedures?

Question 178

Risks HR should always evaluate: Performance management

Answer 178

Is a robust performance management program in place?
Are written records of documented performance issues retained?
Are antiharassment policies and procedures adequate?

Question 179

Risks HR should always evaluate: Exiting employees

Answer 179

Are exit interviews conducted?
Are all access codes, passwords, etc., deactivated?
Is organizational property (information and equipment) retrieved from terminated employees?