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PHR / SPHR Professional Exam: Risk Management

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How HR professionals can help their organization manage risks. There are risks to people and risks to budget. Some risks can be shifted away from the organization through insurance policies. Others must be managed and minimized. When HR professionals ask to be included in executive-level discussions, explaining how risks have been controlled is one way to gain that inclusion. Real contributions to business goals and financial bottom line will gain attention every time.

PHR / SPHR Professional Exam: Risk Management

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25 Questions

1. Jerrod works for a federal contractor with 145 employees. He knows he should keep a log of job applicants, but his boss doesn’t want to give him the clerical support he needs to keep the log current. If you were Jerrod, what would you do?

Because the employer hasn’t kept an applicant log up to now, Jerrod should wait until next year to start fresh with the new year.The CEO should understand that an applicant log is something that can be created at the end of the year and that’s when critical clerical support will be needed.Because the employer has fewer than 150 employees, it’s not an issue. He can ignore the log until he hires five more people.The CEO should understand that federal regulations permit the Department of Labor to presume illegal discrimination if they don’t track applicants.

2. Lynell just got a call from a manager in Production asking if the rumor is true about a new policy on pension plans. As the HR Manager, what should Susan do about that phone call?

She should announce to all employees that the pension plan is being changed, or that the rumor is false.Lynell should do nothing. It’s just one person who has raised the question. It will go away on its own without causing upset among the employees.She should explain to senior management that the rumor is working its way through the organization. If it is true, she should encourage senior managers to move forward with announcements so the truth about new pension changes can be heard directly from the employer. If it is not true, Lynell should work with managers to communicate with employees that there is no foundation for the rumor.Lynell should tell the production manager not to say anything about the pension issue until senior management is ready to unveil the changes.

3. Bill is going to return to work after a skiing accident had him recovering from a broken leg for six weeks. His doctor has written return to work instructions prohibiting Bill from standing for more than 30 minutes at a time. Because his job requires constant standing at the customer service counter, you have to determine whether to have him return to work or not.

You should have a frank discussion with Bill about what he can do and what he can’t do. From that conversation, you should determine if some accommodation can be made for the restrictions and how long that will need to last. Perhaps he can be reassigned to another job temporarily, or it might be that he can’t return until he can take on all of his responsibilities.There is no way that Bill can return to work until he is able to perform all of the essential functions of his job, including walking to get parts when necessary.Sure, let Bill return to work and give him a stool to sit on while talking with customers. If he has to get something from the parts inventory, you can hire a temp to do the running for him.You should have a frank discussion with Bill’s coworkers and tell them they will have to do more running to help Bill when parts are needed. They can object but you can require them to help out.

4. Gary is converting paper records to a computerized Human Resource Information System (HRIS). He wants to make it easy for employees to update their personal records in the new system. What approach would you recommend he use?

Call each employee and review each personal data element to be sure they are all accurate. Take corrections over the telephone.Send an e-mail to each employee with the employee’s personal information asking for corrections and additions.It is a good idea to give a hard copy of their personal information to each employee so they can verify the accuracy of the data. Ask for feedback with corrections or additions.Send out a notice to all employees that the new system is being created and ask anyone with questions to contact Gary.

5. Tobias has just been appointed the first HR Manager for his company. He wants to organize employee records as one of his first projects. He isn’t sure how to separate records into various categories of information. How would you advise Tobias?

The HR staff should only be concerned with personnel files. Medical records and investigation records should be handled by someone outside the HR organization.All records for each employee should be consolidated into one file per person. That file should be kept in the HR office and secured in locked file cabinets.Separate files should be created for each employee’s personnel records, medical records, and investigation files if necessary. All files should be secured in locked file cabinets.According to the Employee Records Stability Act, employee files should contain personnel records and medical records but never investigation information. Securing them is a requirement.

6. Ivory wants to hire a benefits consultant to help assess the organization’s healthcare benefit options. Her boss tells her to draft an RFP to be used in obtaining input from other benefit consultants. Ivory has never prepared an RFP before. As her boss you should tell her:

Getting a list of qualifications and the bid amount are the two most important components of the RFP process.Having responses include a list of deadlines that will be met for the project is something Ivory should not overlook.If you have someone in mind for the work, write the RFP so only that person will qualify and be selected.It is important to begin by developing a list of criteria for evaluating each response from consultants.

7. Monika works hard and parties hard. On Monday morning, she comes in to work and seems to be slurring her words and not really focusing on the things she looks at. The supervisor calls you to see what you recommend as the HR Manager. What will you tell the supervisor?

Tell the supervisor to take Monika home. She isn’t fit for duty and the organization doesn’t want the liability of having her at work.Tell the supervisor that he should keep an eye on her to be sure she doesn’t get hurt. It should be just fine. Monika can handle this type of thing.Tell the supervisor we should get Monika to the company doctor for drug and alcohol screening. Be sure he takes her and doesn’t let her drive herself.Tell the supervisor that we can’t get too personal with Monika by asking how she got stoned, so just send her to the break room for a half-hour to see how she feels after that.

8. John is told he has been assigned the task of preparing written job descriptions for each job in the organization. He questions the idea that physical and mental requirements should be in writing. It sounds to John like the employer is more likely to be sued if those things are committed to paper. What would you tell John if you were his boss?

Each job should have both physical and mental job requirements identified. Those requirements should be discussed with job candidates to determine if each candidate feels they can meet those requirements, or if they will need an accommodation of some sort.If physical and mental requirements have any possibility for excluding disabled people, John’s right. They shouldn’t be included in the description of job content.Physical and mental job requirements should only be discussed if a disabled job candidate applies for the position. Otherwise, they should be left out of the description.Actually, there should be two versions of every job description. One should have the mental and physical requirements and the other should not. The one without that content is what should be published announcing the opening.

9. Valerie has just begun work as HR Manager for a new non-profit organization. She has been tasked with developing many policies, including one on workplace safety. Valerie isn’t sure that she needs to be concerned about Injury and Illness Prevention Plans (IIPP). What would your advice to her be?

She should start creating her IIPP right away. Liability is present from day one of the employer’s operations.She is right. Non-profits don’t have to be concerned about meeting requirements for written IIPPs.She should develop a policy about safety, but there is no need for her to go to the trouble of creating an IIPP. That is just for government and for-profit companies.She should take advantage of the 120-day grace period offered by OSHA rules and put creation of a safety program on her “To Do” list for later in the year.

10. Lynell just got a call from a manager in Production asking if the rumor is true about a new policy on pension plans. As the HR Manager, what should Susan do about that phone call?

She should explain to senior management that the rumor is working its way through the organization. If it is true, she should encourage senior managers to move forward with announcements so the truth about new pension changes can be heard directly from the employer. If it is not true, Lynell should work with managers to communicate with employees that there is no foundation for the rumor.She should announce to all employees that the pension plan is being changed, or that the rumor is false.Lynell should do nothing. It’s just one person who has raised the question. It will go away on its own without causing upset among the employees.Lynell should tell the production manager not to say anything about the pension issue until senior management is ready to unveil the changes.

11. Lanny supervises the accounting operations. He has several of the passwords he needs for software he uses on his job taped to his computer monitor. He knows that he shouldn’t do that but says he can’t remember them and doesn’t want to go digging for them every time he needs to do some work on the computer. What are you going to say to him?

Lanny should never write down his passwords. He should prove that he has them memorized before being allowed back into the software programs.Tell Lanny that he can put the password list on the bottom of his keyboard. No one will think of looking there.If he can’t remember the passwords, he should keep a list of them in a locked desk drawer.Tell Lanny that he should put the note under the glass desktop protector. That way it won’t be obvious to anyone who looks at his computer monitor.

12. Doyle is wrestling with the idea of creating job descriptions for his organization. As the HR Manager, he is wondering how he can convince the line managers to invest the time it will require. How can job descriptions speak to risk management?

Used properly, job descriptions will give supervisors something to prove why they can’t accept a job accommodation request. There are too many actual requirements to be able to allow some of them to slide without getting done.Used properly, supervisors will be able to talk with job candidates about the kinds of educational requirements needed in the job. A job description enables you to weed out unqualified people without wasting interview time.Used properly, job descriptions will include a statement that says, “…and all other duties as may be assigned.” Supervisors should be pleased by that.Used properly, they can help in employee selection (reduce turnover), assist in discussions about job accommodation requests (workers’ compensation), and help in performance management.

13. Hugo has just had a conversation with one of his subordinates about his performance. Now that it is over, Hugo should prepare documentation:

That is signed by the employee and sent to legalThat is filed in the employee’s personnel folderThat is at least four or five pages long with quotations from both supervisor and employeeThat must be approved by in-house counsel and the HR Manager

14. A hazard identification survey should be performed:

Only when the designated Safety Officer says it should be doneIf there is an obvious problem or someone has filed a complaintOn a regular planned schedule that involves most management peopleEvery month in manufacturing organizations and every quarter for all other types of organizations

15. Damion has just called saying he wants to file a complaint that he’s being discriminated against by his supervisor. What should you do if you are the HR Manager?

Give Damion the phone number for the EEOC. They are the experts in handling discrimination complaints. You couldn’t do as good a job if you handled it.Make some notes and explain to Damion that his accusations are very serious and you will get back to him after you talk with his supervisor. In the meantime, he should consider taking some time off.It doesn’t matter how other people are treated, Damion has had such a difficult time. He should get some special recognition and a reward for turning in his supervisor.Ask Damion to explain what happened. Get him to describe the supervisor’s decision that caused him harm, and how that was linked to his membership in a protected group. Ask him how other people have been treated in similar circumstances.

16. Damion has just called saying he wants to file a complaint that he’s being discriminated against by his supervisor. What should you do if you are the HR Manager?

Give Damion the phone number for the EEOC. They are the experts in handling discrimination complaints. You couldn’t do as good a job if you handled it.Ask Damion to explain what happened. Get him to describe the supervisor’s decision that caused him harm, and how that was linked to his membership in a protected group. Ask him how other people have been treated in similar circumstances.It doesn’t matter how other people are treated, Damion has had such a difficult time. He should get some special recognition and a reward for turning in his supervisor.Make some notes and explain to Damion that his accusations are very serious and you will get back to him after you talk with his supervisor. In the meantime, he should consider taking some time off.

17. Ivory wants to hire a benefits consultant to help assess the organization’s healthcare benefit options. Her boss tells her to draft an RFP to be used in obtaining input from other benefit consultants. Ivory has never prepared an RFP before. As her boss you should tell her:

Having responses include a list of deadlines that will be met for the project is something Ivory should not overlook.If you have someone in mind for the work, write the RFP so only that person will qualify and be selected.Getting a list of qualifications and the bid amount are the two most important components of the RFP process.It is important to begin by developing a list of criteria for evaluating each response from consultants.

18. Monika works hard and parties hard. On Monday morning, she comes in to work and seems to be slurring her words and not really focusing on the things she looks at. The supervisor calls you to see what you recommend as the HR Manager. What will you tell the supervisor?

Tell the supervisor that he should keep an eye on her to be sure she doesn’t get hurt. It should be just fine. Monika can handle this type of thing.Tell the supervisor that we can’t get too personal with Monika by asking how she got stoned, so just send her to the break room for a half-hour to see how she feels after that.Tell the supervisor to take Monika home. She isn’t fit for duty and the organization doesn’t want the liability of having her at work.Tell the supervisor we should get Monika to the company doctor for drug and alcohol screening. Be sure he takes her and doesn’t let her drive herself.

19. Hugo has just had a conversation with one of his subordinates about his performance. Now that it is over, Hugo should prepare documentation:

That is filed in the employee’s personnel folderThat is at least four or five pages long with quotations from both supervisor and employeeThat is signed by the employee and sent to legalThat must be approved by in-house counsel and the HR Manager

20. Valerie has just begun work as HR Manager for a new non-profit organization. She has been tasked with developing many policies, including one on workplace safety. Valerie isn’t sure that she needs to be concerned about Injury and Illness Prevention Plans (IIPP). What would your advice to her be?

She should start creating her IIPP right away. Liability is present from day one of the employer’s operations.She should take advantage of the 120-day grace period offered by OSHA rules and put creation of a safety program on her “To Do” list for later in the year.She should develop a policy about safety, but there is no need for her to go to the trouble of creating an IIPP. That is just for government and for-profit companies.She is right. Non-profits don’t have to be concerned about meeting requirements for written IIPPs.

21. Andre has just given instructions to his employee concerning a new sales order. This is not a routine order and there are a couple of unusual requirements. What should Andre do to be sure things will go the way he has instructed?

Andre should carefully supervise exactly how the employee works on the order, staying close and giving input all along the way.Give the employee a chance to explain his understanding of the instructions that have just been given. Because they are complicated, Andre should follow up with written instructions or checklist.Tell the employee to check in after the order is completed to be sure it has been done properly.Tell the employee that this customer is very important and if this order is done properly, there will be more orders to come in the future.

22. The accounting manager comes to you with a stack of printouts showing a long list of embezzlements by one of the employees. Best practices would suggest the following treatment.

Confirm that the data is accurate and shows employee theft. Notify senior management if necessary and obtain authorization to call in police for an arrest. Send the employee a letter confirming their employment termination.Confront the employee and offer the opportunity to resign if the employee promises to repay the stolen funds.With the proof in hand, call the employee and the employee’s supervisor into a conference and terminate the employee on the spot. Send a letter confirming the termination.Once the data has been confirmed, it should be used to confront the employee and demand repayment.

23. A hazard identification survey should be performed:

Only when the designated Safety Officer says it should be doneOn a regular planned schedule that involves most management peopleIf there is an obvious problem or someone has filed a complaintEvery month in manufacturing organizations and every quarter for all other types of organizations

24. The accounting manager comes to you with a stack of printouts showing a long list of embezzlements by one of the employees. Best practices would suggest the following treatment.

Once the data has been confirmed, it should be used to confront the employee and demand repayment.Confirm that the data is accurate and shows employee theft. Notify senior management if necessary and obtain authorization to call in police for an arrest. Send the employee a letter confirming their employment termination.With the proof in hand, call the employee and the employee’s supervisor into a conference and terminate the employee on the spot. Send a letter confirming the termination.Confront the employee and offer the opportunity to resign if the employee promises to repay the stolen funds.

25. Alexia has just received a complaint of discrimination from Marshall, one of her employees. She should now:

Determine if the complaint sounds reasonable and immediately call the employee’s supervisor to discuss thingsDetermine if the employee has a history of complaints and treat this one accordinglyDetermine if there is a prime facie case and investigate if there isDetermine if the employee’s supervisor is going to be receptive to the complaint and an investigation before moving forward

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HRI Certification PHR (Professional in Human Resources) Exam SPHR (Senior Professional in Human Resources) Exam Practice Test 2 SPHR (Senior Professional in Human Resources) Exam PHR / SPHR Professional Exam: Employee and Labor Relations PHR (Professional in Human Resources) Practice Test 2 GPHR (Global Professional in Human Resource) Exam

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25 Questions

❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | What Should We Know? Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | What Should We Know?
Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com