SPHR · Question #288
In a stable industry environment, decentralizing an organization's risk management activities provides a benefit by:
The correct answer is B. Developing ownership with less bureaucracy. Decentralized risk models allow front-line units to manage risks directly, fostering ownership and faster decision-making. This is especially useful in stable environments where predictability allows standardization. Extract from HRCI-aligned HR knowledge (Risk Management)…
Question
In a stable industry environment, decentralizing an organization's risk management activities provides a benefit by:
Options
- ADecreasing redundancies
- BDeveloping ownership with less bureaucracy
- CLeveraging personnel effectively
- DAchieving process efficiency with greater control
How the community answered
(51 responses)- A6% (3)
- B63% (32)
- C22% (11)
- D10% (5)
Explanation
Decentralized risk models allow front-line units to manage risks directly, fostering ownership and faster decision-making. This is especially useful in stable environments where predictability allows standardization. Extract from HRCI-aligned HR knowledge (Risk Management): SPHR-level HR must evaluate "centralized vs. decentralized risk governance models." In stable conditions, decentralization allows teams to manage risks autonomously, reducing bottlenecks and bureaucracy.
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