Professional in Human Resources (PHR) — Question 6

Beth is a HR Professional for her organization and she's discussing the risk of growing her organization's business. What is risk and why would it be considered in
HR for organizational growth?

Answer options

• A. Risk is an uncertain event or condition that may help or hinder an organization. Adding employees can help positive risks or amplify negative risk events.
• B. Risk is an adverse event that can halt, hinder, or hurt the objectives of a business.
• C. Risk is a negative event that an organization must consider when adding new employees to grow a company.
• D. Risk is an uncertain event or condition that can have a positive or negative effect on the goals of an organization.

Correct answer: A

Explanation

The correct answer, A, accurately defines risk as an uncertain event that can affect an organization positively or negatively, highlighting the dual nature of risks when adding employees. Options B and C focus solely on the negative aspects of risk, which does not encompass the full definition necessary for HR's understanding of organizational growth. Option D, while partially correct, does not specify the impact on organizational growth in the same way as A.