Which of the following is the most accurate example of risk mitigation that the Shroud organization may choose to utilize?

After conducting a thorough HR audit, the Shroud organization has identified several vulnerabilities in its HR systems, procedures and practices.

Which of the following is the most accurate example of risk mitigation that the Shroud organization may choose to utilize?
A . Implementing an emergency alert system for expatriates working in a volatile region
B . Requiring that all qualified candidates undergo a drug test, reference checks, and background checks
C . Training management on job-specific appropriate questions to ask during recruitment interviews
D . Requiring inoculation programs for expatriates before they travel for job assignments to countries
with significant health risks.

View Answer

Answer: A

Explanation:

Risk mitigation is a strategy to prepare for and lessen the effects of threats faced by a business. It involves taking action to reduce exposure to potential risks. Risk mitigation seeks to reduce (not prevent) the negative impact of a risk such as an emergency alert system for expatriates C this will not prevent a crisis, but it will reduce the expatriate’s exposure to threats and decrease the effect of stress from such risks. Note that the other options seek to prevent (not reduce) the likelihood of the risk happening.