HR can contribute to reducing potential risk by:

Question

Options

• Aassessing employment practices.
• Bcompleting a comprehensive legal review.
• Cconducting a cost-benefit analysis.
• Daddressing employee turnover.

• A
  95% (54)
• C
  2% (1)
• D
  4% (2)

Explanation

HR contributes most directly to reducing potential organizational risk by assessing employment practices (A). At the SPHR level, risk management includes identifying and mitigating people- related risks such as discrimination, wage and hour violations, inconsistent policy application, and inadequate documentation. Assessing employment practices allows HR to proactively identify gaps in compliance, fairness, and consistency before they result in claims, penalties, or reputational damage. This includes reviewing hiring, promotion, discipline, termination, and compensation practices. Comprehensive legal reviews (B) are typically led by legal counsel, though HR may support them. Cost-benefit analysis (C) supports financial decision-making, not risk reduction. Addressing turnover (D) is important but does not directly mitigate legal or compliance risk. SPHR exam content highlights HR's role in preventive risk management through policy review, training, and practice audits.

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