SHRM SCP CORRECT EXAMS REVIEW QUESTIONS
AND ANSWERS SURE A+
✔✔pull factors - ✔✔A factor that draws or attracts businesses to another
location.1)greater strategic control 2)government policies that promote outward foreign
investment 3)trade agreements
✔✔Perlmutter orientations for multinational corporations - ✔✔Ethnocentric,
✔✔Ethnocentric - ✔✔Headquarters tight control over subsidiaries who expected to
follow HQ's policies, procedures. Only one best way.
✔✔Polycentric - ✔✔take the view that native managers in the foreign offices best
understand native personnel and practices, and so the home office should allow them to
chart their own course. many best practices.
✔✔Regiocentric - ✔✔Subsidiaries are grouped into regions (Such as North America,
Europe and Asia Pacific) Communication and coordination are high within the region but
not as high between the region and headquarters.
✔✔Geocentric - ✔✔subsidiaries are neither satellites taking orders nor independent
bodies setting their own course. HQ and branches participate in a network each
contributing expertise. team way, transcending borders
, ✔✔Global integration (GI) strategy - ✔✔consistency of approach, standardization of
processes and common corporate culture across global operations
✔✔Local responsiveness (LR) strategy - ✔✔Globalization strategy that emphasizes
adapting to the needs of local markets and allows subsidiaries to develop unique
products, structures, and systems.
✔✔PAPA model (risk prioritization matrix) - ✔✔prepare (not likely to happen but will
move fast), act (likely to happen and fast-moving), park (slow moving and unlikely) and
adapt (slow materializing trends that may affect the org significantly) - likelihood by
speed of change matrix
✔✔Kaplan and Mikes's Categories of Risk - ✔✔1. Internal and preventable.
2. Strategy. (uncertainty that an organization willingly accepts when it commits to a
strategy)
3. External. (outside the organization and beyond its control)
uncertainty whether loans can be repaid or employees will be fully productive.
✔✔COSO Enterprise Risk Management—Integrated Framework (ERM Framework) -
✔✔Strategy—risks that affect the organization's ability to achieve its objectives
Operations—risks that affect the myriad ways in which the organization creates value
Financial reporting—risks that affect the accuracy and timeliness of information about
the organization's financial performance and condition
Compliance—risks associated with meeting the requirements of laws and regulations
✔✔ISO risk management - ✔✔1) establish context of risk
2) Identify and analyze risk
3) manage risks
4) evaluate
✔✔PESTLE analysis - ✔✔Political, Economic, Social, Technological, Legal,
Environmental
✔✔Single loss expectancy (SLE) - ✔✔Expected monetary loss every time a risk occurs;
calculated by multiplying asset value by exposure factor.
✔✔Annualized loss expectancy (ALE) - ✔✔Expected monetary loss for an asset due to
a risk over a one-year period; calculated by multiplying single loss expectancy by
annualized rate of occurrence.
✔✔Upside risk - ✔✔An opportunity that arises out of uncertainty about outcomes.
Optimize, share, enhance
AND ANSWERS SURE A+
✔✔pull factors - ✔✔A factor that draws or attracts businesses to another
location.1)greater strategic control 2)government policies that promote outward foreign
investment 3)trade agreements
✔✔Perlmutter orientations for multinational corporations - ✔✔Ethnocentric,
✔✔Ethnocentric - ✔✔Headquarters tight control over subsidiaries who expected to
follow HQ's policies, procedures. Only one best way.
✔✔Polycentric - ✔✔take the view that native managers in the foreign offices best
understand native personnel and practices, and so the home office should allow them to
chart their own course. many best practices.
✔✔Regiocentric - ✔✔Subsidiaries are grouped into regions (Such as North America,
Europe and Asia Pacific) Communication and coordination are high within the region but
not as high between the region and headquarters.
✔✔Geocentric - ✔✔subsidiaries are neither satellites taking orders nor independent
bodies setting their own course. HQ and branches participate in a network each
contributing expertise. team way, transcending borders
, ✔✔Global integration (GI) strategy - ✔✔consistency of approach, standardization of
processes and common corporate culture across global operations
✔✔Local responsiveness (LR) strategy - ✔✔Globalization strategy that emphasizes
adapting to the needs of local markets and allows subsidiaries to develop unique
products, structures, and systems.
✔✔PAPA model (risk prioritization matrix) - ✔✔prepare (not likely to happen but will
move fast), act (likely to happen and fast-moving), park (slow moving and unlikely) and
adapt (slow materializing trends that may affect the org significantly) - likelihood by
speed of change matrix
✔✔Kaplan and Mikes's Categories of Risk - ✔✔1. Internal and preventable.
2. Strategy. (uncertainty that an organization willingly accepts when it commits to a
strategy)
3. External. (outside the organization and beyond its control)
uncertainty whether loans can be repaid or employees will be fully productive.
✔✔COSO Enterprise Risk Management—Integrated Framework (ERM Framework) -
✔✔Strategy—risks that affect the organization's ability to achieve its objectives
Operations—risks that affect the myriad ways in which the organization creates value
Financial reporting—risks that affect the accuracy and timeliness of information about
the organization's financial performance and condition
Compliance—risks associated with meeting the requirements of laws and regulations
✔✔ISO risk management - ✔✔1) establish context of risk
2) Identify and analyze risk
3) manage risks
4) evaluate
✔✔PESTLE analysis - ✔✔Political, Economic, Social, Technological, Legal,
Environmental
✔✔Single loss expectancy (SLE) - ✔✔Expected monetary loss every time a risk occurs;
calculated by multiplying asset value by exposure factor.
✔✔Annualized loss expectancy (ALE) - ✔✔Expected monetary loss for an asset due to
a risk over a one-year period; calculated by multiplying single loss expectancy by
annualized rate of occurrence.
✔✔Upside risk - ✔✔An opportunity that arises out of uncertainty about outcomes.
Optimize, share, enhance
