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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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1. 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.Confront the employee and offer the opportunity to resign if the employee promises to repay the stolen funds.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.

2. 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 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.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 start creating her IIPP right away. Liability is present from day one of the employer’s operations.

3. 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’s supervisor is going to be receptive to the complaint and an investigation before moving forwardDetermine if the employee has a history of complaints and treat this one accordinglyDetermine if there is a prime facie case and investigate if there is

4. 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, 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, they can help in employee selection (reduce turnover), assist in discussions about job accommodation requests (workers’ compensation), and help in performance 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, job descriptions will include a statement that says, “…and all other duties as may be assigned.” Supervisors should be pleased by that.

5. 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 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 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 to take Monika home. She isn’t fit for duty and the organization doesn’t want the liability of having her at work.

6. The AB Trucking company has never had a safety program until now. The CEO has said HR will develop one and make sure it is implemented the right way. What should the HR Manager include in the project outline for the safety program to succeed?

Only the CEO can make safety a reality. It is up to the policy statements to carry the weight and produce the results.Supervisors should be required to spend a minimal amount of time or they won’t support the project.The HR Manager should include all of the OSHA-specified content in the written IIPP. That will mean supervisors will have to spend time on safety issues.The written program should include MSDS and an annual walkthrough by the CEO to reinforce the importance of safety.

7. 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 tell the production manager not to say anything about the pension issue until senior management is ready to unveil the changes.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.

8. Augustine filed a discrimination complaint saying her supervisor made sexual advances toward her. Now, her supervisor tells her she is being moved to a job at a different work location. She doesn’t like that much because it means a longer commute. Does she have any recourse?

Separating Augustine from her supervisor’s control is the best way to handle this situation. If it means she has to move, then at least she will be protected from him. She has no recourse.Actually, she does. Making an employee move work locations against her wishes can be considered retaliation for having filed the complaint. The supervisor should have been moved instead. She should file a retaliation complaint.If there had been any openings for supervisors at other work locations, her supervisor would have been moved. She’ll just have to tough it out with the longer commute. Maybe later she can get a job at the original work location when something opens up.Augustine’s supervisor is hopping mad to begin with. There is no way he will keep her in his group, so she is going to move one way or another. Augustine is just going to have to accept the move as a consequence of her complaint.

9. 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.

Confront the employee and offer the opportunity to resign if the employee promises to repay the stolen funds.Once the data has been confirmed, it should be used to confront the employee and demand repayment.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.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.

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

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

11. 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?

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.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.

12. 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?

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.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.Andre should carefully supervise exactly how the employee works on the order, staying close and giving input all along the way.

13. 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 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 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.

14. Almost everyone in the Tiger Tooth Dental Office has and uses social media on their personal cell phones. Doctor Tiger has asked that employees only use their cell phones during breaks, lunch, or in emergencies. Sherlene can’t seem to restrain herself and the cell phone hardly ever leaves her hands. What would you advise Doctor Tiger to do?

Make the Office Manager responsible for enforcing the policy and tell her that Sherlene will not be able to bring her cell phone to work if she doesn’t start abiding by the policy.Explain to Sherlene that one more incident of her using her cell phone during work time will result in disciplinary action. Include the Office Manager in those discussions.Have Sherlene store her cell phone in the doctor’s private office and allow her to have it back at lunch and after work.Confiscate Sherlene’s cell phone. Tell her she can get it back at the end of the day.

15. 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, job descriptions will include a statement that says, “…and all other duties as may be assigned.” Supervisors should be pleased by that.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, they can help in employee selection (reduce turnover), assist in discussions about job accommodation requests (workers’ compensation), and help in performance management.

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

Determine 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 forwardDetermine if the complaint sounds reasonable and immediately call the employee’s supervisor to discuss things

17. Augustine filed a discrimination complaint saying her supervisor made sexual advances toward her. Now, her supervisor tells her she is being moved to a job at a different work location. She doesn’t like that much because it means a longer commute. Does she have any recourse?

Actually, she does. Making an employee move work locations against her wishes can be considered retaliation for having filed the complaint. The supervisor should have been moved instead. She should file a retaliation complaint.If there had been any openings for supervisors at other work locations, her supervisor would have been moved. She’ll just have to tough it out with the longer commute. Maybe later she can get a job at the original work location when something opens up.Augustine’s supervisor is hopping mad to begin with. There is no way he will keep her in his group, so she is going to move one way or another. Augustine is just going to have to accept the move as a consequence of her complaint.Separating Augustine from her supervisor’s control is the best way to handle this situation. If it means she has to move, then at least she will be protected from him. She has no recourse.

18. Hilario has just been asked to prepare a written job description for a newly created position. Because this job has never existed before, can Hilario just make things up and correct them later?

In the beginning, it’s not too important to be accurate about the job content. It will develop over time and the description can be updated later.Of course. The description can be updated after someone has been assigned to do it and discovers what responsibilities actually exist.When the supervisor isn’t sure what responsibilities will be assigned to the job, Hilario should reschedule development of the job description until the supervisor is more confident about the job content.A job description should be prepared in advance, with help from the supervisor. It is up to the employer to determine job content. Listing those responsibilities is important because they can help in selecting a new employee for the new job.

19. 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?

Tell Lanny that he can put the password list on the bottom of his keyboard. No one will think of looking there.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.Lanny should never write down his passwords. He should prove that he has them memorized before being allowed back into the software programs.If he can’t remember the passwords, he should keep a list of them in a locked desk drawer.

20. If you are responsible for developing the safety plan for your organization, how would you be able to determine if everyone got out of your building in an emergency?

Have the Safety Officer check the number of people who made it to the gathering location away from the building.Gather all evacuees in a predetermined location outside the building and have supervisors report on their group headcount.Ask everyone who made it out if they know that the people they were talking to earlier were all present at the emergency gathering location.Always have the employee roster on your iPad and take that with you when you evacuate.

21. Alden has always considered himself a benevolent employer, trying to make decisions about employee issues in favor of the employees whenever he could. Yet in all the years he has been in business, he has never had a worker like Mickey. Mickey has been on the payroll for a little over two years and all of a sudden has started missing work two days a week. He has no more accrued sick time and has blown through all of his accrued vacation time. How should Alden handle the problem?

Talk with Mickey and explain that you are thinking of getting a replacement for him. As a matter of fact, you have already posted the job opening on Craig’s List. Tell him perfect attendance from now on is the only thing that can save his job.Talk with Mickey and try to determine what has suddenly changed in his life. If he is ill or has a family problem, it may be possible to offer a leave of absence so he can deal with whatever has happened.Talk with Mickey and explain how important attendance is to personal performance. He can’t do his job if he isn’t here every day. Get a commitment from Mickey that he will not miss any more work days.Talk with Mickey and tell him that he will be disciplined if he doesn’t end his attendance problem. Any more unauthorized time off and he might have all of his days free.

22. 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.It is important to begin by developing a list of criteria for evaluating each response from consultants.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.

23. For quality control purposes, you sit in on random interviews your recruiters conduct with finalists in the employment selection process. Your recruiter Samantha has just been asked, “I’m interested in a permanent job that will last for the rest of my career. Is this the job that will do that for me?” What would you like to hear Samantha say in a response?

We can’t guarantee lifetime employment.Not a problem. We treat our people like members of a family. You won’t have anything to worry about.The company’s not going anywhere and you can expect to be here for life.We can’t give you promises, but you can expect that this job is going to last for a very long time.

24. 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

25. Sylvia has just been asked to make a presentation to senior management about the new healthcare benefit program. To be sure it goes well Sylvia should:

Prepare a brief summary sheet with key points about the new healthcare benefits that the managers can take back to their employee groups for discussion.Practice her presentation in front of a mirror and be sure she wears her best business suit on that day.Ask the senior managers if any of them have already learned about the new program.Make sure she has included the answers to the questions Who, What, When, Where, and Why in her presentation.

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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