Prerequisite Qualification 1: Probability (I) :Introduction to Financial Engineering and Risk Management (Introduction to Financial Engineering and Risk Management) Answers 2025

Question 1

What short-term action can be taken to improve HR value, alignment, communication, control, and coordination within the division?

❌ Hire a full staff
✅ Establish regular communication
❌ Install the HRIS system
❌ Fully adopt corporate HR policy

Explanation:
In the short term, regular communication delivers immediate improvement in alignment, coordination, and control without large structural or system changes.

Question 2

What HR service is NOT currently integrated within the division?

❌ HR investigations
❌ Benefits system (US only)
❌ Management training
✅ Profit sharing/bonus (global)

Explanation:
The global profit sharing/bonus system is not yet integrated across the division.

Question 3

What actions would increase the likelihood of success in changes to the current HR approach?

❌ Sponsorship from Keith
❌ Increased communication
❌ Clear expectations
✅ All of the above

Explanation:
Successful change requires leadership sponsorship, communication, and clarity of expectations together.

Question 4

What would be an effective transitional structure while a longer-term solution is developed?

❌ Report all division HR to Mund Tools HR
❌ Have all HR report directly to corporate
✅ Matrix all division HR persons to Brad Jones
❌ Report all division HR to regional HR heads

Explanation:
A matrix reporting structure to Brad Jones enables coordination and alignment without full reorganization.

Question 5

Why isn’t even simple HR integration free?

❌ Many services actually are free.
❌ Corporate HR is a cost center and must charge-back effort.
✅ Requires dedicated time and multiple individuals’ effort
❌ It is not tax deductible in all countries.

Explanation:
Integration always requires time, effort, and coordination across multiple people.

Question 6

How would the integration of HR services impact the problem with “corporate overhead charges”?

✅ Create demonstrated value for the cost
❌ Reduce the allocation cost to the division
❌ There would be no impact.
❌ Increase the allocation cost to the division

Explanation:
Integration helps justify overhead charges by clearly demonstrating value received.

Question 7

What is a symptom of ineffective design in the HR team in the division?

❌ HR reports to line and staff managers.
❌ Some of the HR staff are part-time.
❌ The division is not profitable.
✅ HR organization decision making is slow in recruiting.

Explanation:
Slow recruiting decisions indicate poor structure, unclear authority, and coordination problems.

Question 8

Why should Sorriso be careful about wholesale integration of HR practices?

❌ It would make it more difficult to spin the units off or restructure.
❌ To avoid creating conflict with the unit leaders and possibly the board
✅ The business lifecycle stages are different in the division from the two established corporate business units.
❌ Because of the ongoing litigation in the division, it would be better to wait.

Explanation:
Different business lifecycle stages require different HR approaches.

Question 9

What is the primary method for HR collaboration currently?

❌ Division HR steering committee
❌ Reporting relationships with Brad Jones
✅ Informal networks
❌ Regional HR support

Explanation:
HR collaboration currently relies mainly on informal relationships, not formal structures.

Question 10

Which corporate strategic goal would be supported by greater integration of HR support?

❌ Operational excellence
❌ Financial performance
❌ Engaged people
✅ All of the above

Explanation:
Integrated HR supports operations, financial outcomes, and employee engagement simultaneously.

Question 11

What is NOT an area where integration can support stronger corporate governance?

❌ Succession planning
❌ HR Policy implementation
✅ Replacing legacy HR staff
❌ Recruiting practices

Explanation:
Governance focuses on systems and processes, not replacing individuals.

Question 12

What are potential sources of resistance to the changes in HR support?

❌ Fear
❌ Anger
❌ Neither fear or anger
✅ Both fear and anger

Explanation:
Change often triggers fear (loss of control) and anger (disruption of status quo).

Question 13

What is NOT a recommended method to support the implementation of the HR changes?

❌ Collaboration
❌ Inclusiveness
❌ Dialog
✅ Coercion

Explanation:
Coercion undermines trust and increases resistance during change.

Question 14

What type of team would be created to engage interested HR team members in mutual support and ongoing sharing of best practices?

❌ Project task force
❌ Skunk works
❌ Self-directed team
✅ Community of practice

Explanation:
A community of practice supports learning, sharing, and continuous improvement.

Question 15

What option would represent a radical change in HR service provision for the Digital Division?

❌ Hiring experts for new roles
❌ Training HR staff on state-of-the-art approaches
❌ Realigning current groups to a new structure
✅ Outsourcing recruiting to a third party

Explanation:
Outsourcing recruiting fundamentally changes how HR services are delivered, making it a radical shift.

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