Free SHRM-CP practice

20 free SHRM-CP practice questions

Twenty original SHRM-CP items built on the 2026 SHRM BASK: eight situational judgment scenarios, two foundational knowledge items, and ten HR knowledge items, from confidential leave questions and inclusive job postings to compa-ratios and FMLA eligibility. The items follow SHRM's published weights for the six exam areas, but 20 items cannot match the real exam's mix or difficulty, and your score here does not predict a pass.

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These are original Passy questions written for SHRM-CP exam preparation. They are not official SHRM items, not SHRM's sample questions, not items from the SHRM Certification Prep System, and not recalled exam questions. Each is a single-answer item with four options. Like the exam, half the set covers the three behavioral competency clusters (eight situational judgment and two foundational knowledge items) and half covers the three HR knowledge domains. The items are split approximately in proportion to SHRM's published weights: 4 Leadership, 3 Interpersonal, 3 Business, 4 People, 4 Organization, and 2 Workplace. Items on U.S. law say so. Twenty items cannot match the real exam's mix or difficulty, and your results here do not predict a pass or a scaled score.

Quick PracticeQuestion 1 of 20
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LeadershipStep 1 · Choose one answer

An HR generalist processes medical leave paperwork. Over lunch, a department manager who is also a friend asks why a team member has been out for two weeks and whether it is "something serious." The employee has not shared the diagnosis with the team. What should the HR generalist do?

Question review

All 20 SHRM-CP questions with explanations

Try the set above first, then use this list to review. Each answer and explanation stays closed until you open it.

  1. Question 1 · Leadership

    An HR generalist processes medical leave paperwork. Over lunch, a department manager who is also a friend asks why a team member has been out for two weeks and whether it is "something serious." The employee has not shared the diagnosis with the team. What should the HR generalist do?

    1. Share the general nature of the condition so the manager can plan, but not the diagnosis
    2. Say the reason is confidential and share only what the manager needs, like the return date
    3. Suggest the manager ask the employee's coworkers, who may know more
    4. Say nothing for now, then email the manager the leave paperwork so the request is on record
    Show answer and explanation for question 1

    Correct answer: B · Say the reason is confidential and share only what the manager needs, like the return date

    The 2026 SHRM BASK lists privacy principles, including confidentiality, and the protection of employee confidentiality among the key concepts of Ethical Practice. Medical information is shared on a need-to-know basis: the manager needs to know that the employee is on approved leave and when they are expected back, not the condition behind it. Declining politely, explaining why, and giving the work-related facts protects the employee and still lets the manager plan. A hint about the general nature of the condition is still a disclosure. Sending the manager to coworkers invites speculation. Emailing the leave paperwork discloses even more, in writing. In the United States, laws such as the ADA and the FMLA also require medical information to be kept confidential and apart from personnel files.

    Look for this next time: Share medical information only on a need-to-know basis; managers usually need leave status and return dates, not diagnoses.

  2. Question 2 · Leadership

    A hiring manager asks the HR generalist to post a customer support job that requires applicants to be "native English speakers." The role handles customer calls and written chats in English. What should the HR generalist do?

    1. Post the requirement as written, since the manager knows the job best
    2. Remove every language requirement so that no applicant is screened out
    3. Keep the wording but add a statement that the company is an equal opportunity employer
    4. Replace it with the English proficiency the job needs, assessed the same way for all
    Show answer and explanation for question 2

    Correct answer: D · Replace it with the English proficiency the job needs, assessed the same way for all

    A "native speaker" rule screens people by where they learned a language rather than by whether they can do the work, which can exclude qualified applicants on the basis of national origin. Inclusive hiring, part of the Inclusive Mindset competency in the 2026 SHRM BASK, defines requirements by what the job actually needs: here, the level of spoken and written English the calls and chats require, measured the same way for every applicant, for example with a short work sample. In the United States, the EEOC's Enforcement Guidance on National Origin Discrimination (2016) says an English fluency or proficiency requirement is generally permissible only if it is required for effective performance of the position. Posting the wording unchanged keeps the problem, dropping all language requirements ignores a real job need, and an EEO statement does not cure a discriminatory requirement.

    Look for this next time: Define language requirements by the proficiency the job needs and assess them consistently, not by where a person learned the language.

  3. Question 3 · Leadership

    An HR generalist is leading the rollout of new performance check-in software. In a four-week pilot with two departments, fewer than half of the managers completed their check-ins, and several said the steps were confusing. The companywide launch is scheduled in three weeks. What should the HR generalist do first?

    1. Launch on schedule and send every manager a reminder about the deadline
    2. Ask pilot managers what got in the way, adjust training or setup, then confirm the plan
    3. Delay the launch indefinitely, until every pilot manager has completed all of their check-ins
    4. Ask senior leaders to tie check-in completion to each manager's bonus
    Show answer and explanation for question 3

    Correct answer: B · Ask pilot managers what got in the way, adjust training or setup, then confirm the plan

    A pilot exists to surface obstacles before a full rollout. The 2026 SHRM BASK describes Managing HR Initiatives as including identifying and developing solutions for obstacles and adapting when project requirements or constraints change. Talking with the pilot managers shows whether the problem is training, the software's setup, or workload, and the fix can be built in during the three weeks before launch, with leaders told about any change to the plan. Launching unchanged repeats the pilot's problems across the company, and reminders do not fix confusing steps. An open-ended delay stalls the initiative without diagnosing anything. Tying bonuses to completion may raise the numbers, but it pressures managers to complete steps they do not understand, which undermines the quality of the check-ins.

    Look for this next time: Use pilot results to find and fix obstacles before a full rollout, instead of launching unchanged or stalling.

  4. Question 4 · Leadership

    A company adds a quarterly bonus for sales reps who exceed a new target. The reps value the bonus, and the company has always paid bonuses as promised, but most reps say the target is impossible to reach with their current territories. Under Vroom's expectancy theory, which element is weakest?

    1. Expectancy: the belief that effort will lead to the required performance
    2. Instrumentality: the belief that performance will lead to the reward
    3. Valence: the value employees place on the reward
    4. Equity: the fairness of rewards compared with coworkers' rewards
    Show answer and explanation for question 4

    Correct answer: A · Expectancy: the belief that effort will lead to the required performance

    Expectancy theory, one of the motivation theories listed among the Leadership & Navigation key concepts in the 2026 SHRM BASK, holds that motivation depends on three beliefs: that effort will produce the required performance (expectancy), that performance will be rewarded (instrumentality), and that the reward is worth having (valence). The reps value the bonus, so valence is strong, and the company has always paid as promised, so instrumentality is strong. What fails is expectancy: if the target cannot be reached, extra effort seems pointless, and the bonus will not motivate. Equity is a different theory, about comparing one's own outcomes and inputs with other people's. Setting a target the reps can reach, for example by adjusting it to territory potential, repairs the weak link.

    Look for this next time: Expectancy theory needs all three links: effort to performance, performance to reward, and a valued reward; an unreachable target breaks the first.

  5. Question 5 · Interpersonal

    Two shift supervisors at a distribution center keep arguing over who gets the forklift operators during peak hours, and each has complained to HR about the other. Productivity is slipping on both shifts. What should the HR generalist do?

    1. Bring them together to agree on a shared rule based on each one's needs
    2. Decide the forklift allocation for them so the dispute ends quickly
    3. Tell both supervisors to stop complaining and work it out on their own
    4. Ask the operations manager to move one of the supervisors to a different shift
    Show answer and explanation for question 5

    Correct answer: A · Bring them together to agree on a shared rule based on each one's needs

    This is a task conflict over a shared resource, and both supervisors have legitimate needs. Collaboration, one of the conflict resolution strategies the 2026 SHRM BASK lists under Relationship Management, brings them together to share their constraints, such as peak volumes and staffing, and to agree on a rule both can follow. That removes the cause and strengthens the working relationship. HR deciding for them may end this dispute, but it leaves them dependent on HR for the next one, and the rule may not fit operating realities. Telling them to work it out alone is avoidance, and it has not worked so far. Moving a supervisor is a drastic structural step taken before any real attempt to resolve the conflict.

    Look for this next time: For task conflict over shared resources, facilitate collaboration on each side's needs instead of imposing a fix or avoiding it.

  6. Question 6 · Interpersonal

    A manufacturer is changing its health plan carrier, and open enrollment starts in three weeks. Most of its 600 employees work on the plant floor across three shifts and rarely use company email. Several speak Spanish as their first language. How should the HR generalist communicate the change?

    1. Send a detailed email and post the plan documents on the intranet
    2. Hold one town hall during the day shift and record it for anyone who misses it
    3. Use shift meetings, printed English and Spanish materials, and HR drop-in hours
    4. Ask supervisors to tell their teams about the change when convenient
    Show answer and explanation for question 6

    Correct answer: C · Use shift meetings, printed English and Spanish materials, and HR drop-in hours

    Communication works when the channel, timing, and language fit the audience. The 2026 SHRM BASK lists creating communication plans and choosing among media such as face-to-face meetings, reports, and town halls among the key concepts of Communication. These employees rarely use email, work three shifts, and include Spanish speakers, so short meetings on every shift, printed materials in both languages, and drop-in hours give everyone a way to hear the message and ask questions before enrollment. Email and the intranet miss most of the workforce. A single day-shift town hall excludes two shifts, and a recording still depends on access they may not have. Leaving it to supervisors whenever convenient produces inconsistent, possibly inaccurate messages about an important benefit.

    Look for this next time: Match communication channels, timing, and language to how employees actually work, especially for important benefit changes.

  7. Question 7 · Interpersonal

    A new supervisor asks the HR generalist to tell an employee that their frequent lateness must stop, because the supervisor is uncomfortable with confrontation. The lateness is documented, and the attendance policy is clear. What should the HR generalist do?

    1. Deliver the message to the employee so the supervisor can avoid the conflict
    2. Coach the supervisor to prepare for and hold the conversation, offering to attend
    3. Send the employee a written warning from HR without involving the supervisor
    4. Tell the supervisor to wait and raise the lateness at the annual review
    Show answer and explanation for question 7

    Correct answer: B · Coach the supervisor to prepare for and hold the conversation, offering to attend

    Addressing attendance is part of the supervisor's role, and the employee needs to hear the expectation from the person who manages the work. The HR generalist adds the most value by coaching: helping the supervisor plan specific, factual points from the documented lateness and the policy, practice the conversation, and agree on follow-up, with HR present only if the situation calls for it. The 2026 SHRM BASK lists giving feedback among Communication's key concepts and coaching among people management techniques. If HR delivers the message, the supervisor's authority and the employee's trust in the supervisor both weaken, and the problem returns. A written warning from HR skips the conversation and the policy's steps. Waiting for the annual review lets the problem run for months.

    Look for this next time: Coach managers to deliver their own performance messages; HR supports the conversation instead of taking it over.

  8. Question 8 · Business

    A call center director tells the HR generalist that turnover among new hires is too high and asks HR to raise starting pay by 10%. Exit interview notes mostly mention unpredictable schedules and limited training, and few mention pay. What should the HR generalist do first?

    1. Process the 10% increase now, since the director owns the call center budget
    2. Decline the request, since the exit notes show pay is not the problem
    3. Survey employees across the company about pay before taking any action
    4. Review turnover and exit data with the director to confirm the causes first
    Show answer and explanation for question 8

    Correct answer: D · Review turnover and exit data with the director to confirm the causes first

    The 2026 SHRM BASK describes consulting as moving through discovery, analysis and solution, recommendation, and implementation. The director has proposed a solution before the problem is understood, and the exit notes point elsewhere. Reviewing turnover timing, exit data, and perhaps stay interviews with the director builds a shared view of the causes, such as scheduling practices or training, and leads to a recommendation that addresses them. A pay increase might help, but adopting it without analysis risks spending money on the wrong cause. Declining outright dismisses the director's concern and damages the partnership. A companywide pay survey is broader than the problem and delays action on a call center issue.

    Look for this next time: In consulting, diagnose the cause with the client before recommending a solution, even when the client arrives with one.

  9. Question 9 · Business

    HR launched a buddy program for new hires at one of two similar warehouses. Over the next six months, 90-day turnover fell from 30% to 22% at the warehouse with the program and from 31% to 23% at the warehouse without it. Leaders want to roll the program out companywide. What should the HR generalist conclude?

    1. The program cut turnover by 8 points, so it should be rolled out now
    2. The program made things worse, since the other site ended with a similar rate
    3. The data do not show a program effect, since both sites improved equally
    4. The data are meaningless, because turnover can never be compared across sites
    Show answer and explanation for question 9

    Correct answer: C · The data do not show a program effect, since both sites improved equally

    Evidence-Based Decision-Making, a sub-competency of Analytical Aptitude in the 2026 SHRM BASK, means comparing results with what would have happened anyway. Turnover fell 8 percentage points at the program site (30% − 22%) and 8 points at the comparison site (31% − 23%). Because both sites improved by the same amount, something affecting both, such as a change in the local labor market, is the likelier cause, and the data show no added effect from the buddy program. Crediting the program with the full 8 points ignores the comparison site. Nothing suggests the program made things worse, since turnover fell at both sites. Comparing similar sites is a useful design, not a meaningless one; the next step is to look for what changed at both and keep measuring.

    Look for this next time: Judge a program's effect against a comparison group; if both groups improve equally, the program has not been shown to work.

  10. Question 10 · Business

    An HR analyst is summarizing annual pay for the 25 employees in a department. Most earn between $48,000 and $62,000, but two senior specialists earn about $190,000 each. Which statistic best represents a typical employee's pay?

    1. The mean, because it uses every salary in the department
    2. The median, because a few very high salaries distort the mean
    3. The mode, because it shows the highest salary in the group
    4. The range, because it shows the gap between the lowest and highest pay
    Show answer and explanation for question 10

    Correct answer: B · The median, because a few very high salaries distort the mean

    Descriptive statistics are among the basic statistical concepts the 2026 SHRM BASK lists under Analytical Aptitude. The mean adds every salary and divides by the count, so the two $190,000 salaries pull it well above what most of the 25 employees earn. The median is the middle value when salaries are ranked, the 13th of 25 here, and it does not depend on how far the extreme values sit from the rest, so it better represents a typical employee. The mode is the most frequent value, not the highest, and with salaries there may be no repeated value at all. The range describes spread, not a typical value. Reporting the median with the range or the high values gives leaders a fuller picture.

    Look for this next time: Use the median for skewed data such as pay, where a few extreme values pull the mean away from the typical case.

  11. Question 11 · People

    An HR generalist is reviewing pay for an analyst who earns $57,000. The analyst's salary range runs from $48,000 to $72,000, with a midpoint of $60,000. What is the analyst's compa-ratio, and what does it show?

    1. 0.95: paid 5% below the range midpoint
    2. 1.05: paid 5% above the range midpoint
    3. 0.79: paid near the bottom of the range
    4. 0.38: positioned 38% of the way into the range
    Show answer and explanation for question 11

    Correct answer: A · 0.95: paid 5% below the range midpoint

    Compa-ratio, a total rewards metric listed in the 2026 SHRM BASK, compares pay with the midpoint of its range: $57,000 ÷ $60,000 = 0.95. A value below 1.00 means the employee is paid below the midpoint, here by 5%. Dividing the midpoint by pay ($60,000 ÷ $57,000) inverts the ratio and gives about 1.05. Dividing by the range maximum ($57,000 ÷ $72,000 ≈ 0.79) answers a different question. The 0.38 figure is range penetration, a separate measure: ($57,000 − $48,000) ÷ ($72,000 − $48,000) = $9,000 ÷ $24,000 = 0.375, or about 38% of the way from minimum to maximum. A compa-ratio alone does not show that pay is wrong; it prompts a look at experience, performance, and time in the role.

    Look for this next time: Compa-ratio is pay divided by the range midpoint; below 1.00 means pay is below the midpoint.

  12. Question 12 · People

    Managers at a growing company each interview candidates their own way, and hiring decisions for the same role vary widely. HR wants interviews that predict job performance better and treat every candidate consistently. Which practice should HR introduce?

    1. Let each manager keep personal questions but require notes after every interview
    2. Replace interviews with a review of résumés and references only
    3. Add a second unstructured interview with a senior leader for every finalist
    4. Structured interviews: the same job-related questions, scored on a common scale
    Show answer and explanation for question 12

    Correct answer: D · Structured interviews: the same job-related questions, scored on a common scale

    Structured interviews ask every candidate the same predetermined, job-related questions and rate the answers against the same scale and standards. The U.S. Office of Personnel Management describes them as giving candidates equal opportunity to provide information and as assessing candidates accurately and consistently, and research on selection methods has long found them more predictive of job performance than unstructured interviews. Requiring notes improves documentation but leaves each manager's different questions and standards in place. Dropping interviews removes a useful source of job-related evidence. A second unstructured interview adds another inconsistent judgment, not a better one. The 2026 SHRM BASK lists methods for selection assessment, including interviews and scoring, among the key concepts of Talent Acquisition.

    Look for this next time: Structured interviews use the same job-related questions and rating scale for every candidate, improving consistency and prediction.

  13. Question 13 · People

    A company rolled out a polished customer service course built from a vendor's standard content. Three months later, complaint rates are unchanged, and supervisors say the real problem is that agents cannot find answers in the new knowledge base, which the course never covered. Which ADDIE phase was most likely skipped or done poorly?

    1. Analysis, which identifies the performance gap and what learners need
    2. Design, which sets the learning objectives, sequence, and course structure
    3. Development, which produces the course materials
    4. Evaluation, which measures whether the training worked
    Show answer and explanation for question 13

    Correct answer: A · Analysis, which identifies the performance gap and what learners need

    ADDIE, a design model the 2026 SHRM BASK lists under Learning & Development, runs through analysis, design, development, implementation, and evaluation. Analysis comes first: it defines the performance gap, its causes, and what learners need, including whether training is the right fix at all. Here the course addressed general service skills while the actual gap was finding answers in the knowledge base, so the problem started in analysis. Design and development produced a polished course, but they could only work from the needs they were given. Evaluation did its job: it is how the company learned that complaints had not changed. A needs analysis using interviews, observation, or data on complaint causes would likely have pointed to knowledge base training or a better search tool.

    Look for this next time: In ADDIE, analysis defines the real performance gap; skipping it produces training that may be polished but misses the need.

  14. Question 14 · People

    A payroll specialist with strong performance is bored and thinking about leaving. Her manager plans to redesign the job by giving her responsibility for planning the year-end process, authority to approve routine corrections, and direct contact with the auditors. Which job-design technique is this?

    1. Job rotation
    2. Job enlargement
    3. Job enrichment
    4. Work simplification
    Show answer and explanation for question 14

    Correct answer: C · Job enrichment

    Job enrichment adds depth to a job: more responsibility, autonomy, and control over planning and decisions, sometimes called vertical loading. Planning year-end, approving corrections, and working directly with auditors all raise her responsibility and authority, which can make the work more meaningful and support retention. Job enlargement adds more tasks at the same level, such as processing more types of payroll, without more responsibility. Job rotation moves an employee among different jobs over time. Work simplification breaks a job into simpler, more routine steps, which would likely deepen her boredom. The 2026 SHRM BASK lists job enrichment, job enlargement, job rotation, and work simplification among the job-design techniques under Employee Engagement & Retention.

    Look for this next time: Job enrichment adds responsibility and autonomy; job enlargement adds more tasks at the same level.

  15. Question 15 · Organization

    A company's dispute resolution policy gives employees two steps after an internal complaint review. In the first, a neutral third party helps the employee and the company reach their own settlement but cannot impose one. In the second, a neutral third party hears both sides and issues a decision the parties have agreed to accept. What are the two steps?

    1. Arbitration, then mediation
    2. Fact-finding, then mediation
    3. Mediation, then arbitration
    4. Mediation, then a grievance hearing
    Show answer and explanation for question 15

    Correct answer: C · Mediation, then arbitration

    Mediation and arbitration are the two alternative dispute resolution methods the 2026 SHRM BASK names under Employee & Labor Relations. In mediation, a neutral mediator facilitates discussion and helps the parties reach their own agreement; the mediator has no power to impose a result. In arbitration, a neutral arbitrator hears evidence and arguments and decides the dispute, and when the parties have agreed in advance to accept the decision, it is binding. Reversing the order mislabels both steps. Fact-finding produces findings or recommendations rather than a settlement the parties negotiate. A grievance hearing is usually an internal step, often under a union contract, rather than a decision by an outside neutral.

    Look for this next time: A mediator helps the parties reach their own agreement; an arbitrator hears the case and decides it.

  16. Question 16 · Organization

    During a succession planning session, managers place each employee in one of nine cells to see who is ready for larger roles and who needs development. Which two dimensions does this nine-box grid compare?

    1. Tenure and salary grade
    2. Engagement survey score and absenteeism rate over the past year
    3. Current performance and potential for future roles
    4. Skills inventory and job level
    Show answer and explanation for question 16

    Correct answer: C · Current performance and potential for future roles

    The nine-box grid, a succession planning tool the 2026 SHRM BASK lists under Workforce Management, plots current performance on one axis and potential on the other, each usually rated low, moderate, or high, which creates nine cells. High performers with high potential are candidates for accelerated development and succession slates, while a high performer with lower potential may be a valued expert in the current role. Tenure and salary grade describe history and pay, not readiness. Engagement and absenteeism are useful retention signals but are not the grid's axes. Skills and job level matter for fit, but the grid's purpose is to separate how someone performs now from how far they could grow.

    Look for this next time: The nine-box grid compares current performance with potential to guide succession and development decisions.

  17. Question 17 · Organization

    A company with HR business partners embedded in each division creates a small team of compensation and learning specialists who design programs and advise all divisions. Routine transactions stay with a shared service desk. What is the specialist team in this HR structure?

    1. A center of excellence
    2. A shared services center
    3. An HR business partner team
    4. An outsourced HR provider
    Show answer and explanation for question 17

    Correct answer: A · A center of excellence

    Many HR functions are organized in three parts: business partners who work with the leaders of each unit, shared services that handle high-volume transactions, and centers of excellence (also called centers of expertise), made up of specialists in areas such as compensation or learning who design programs and advise across the organization. The specialist team is the center of excellence. The shared service desk already handles routine transactions. Business partners are generalists embedded in divisions, not specialists serving everyone. Nothing in the scenario moves work to an outside provider. The 2026 SHRM BASK lists centers of excellence, shared services, business partners, and matrix structures among HR structural models.

    Look for this next time: Centers of excellence hold HR specialists who design programs for the whole organization; shared services handle routine transactions.

  18. Question 18 · Organization

    A new cross-functional project team was polite and cautious in its first meetings. Three weeks in, members are openly disagreeing about roles, priorities, and who makes decisions, and progress has slowed. Which stage of group development is the team in?

    1. Forming
    2. Norming
    3. Performing
    4. Storming
    Show answer and explanation for question 18

    Correct answer: D · Storming

    Tuckman's model of group development, whose forming, storming, norming, and performing stages the 2026 SHRM BASK lists under group dynamics, describes a team moving from polite orientation to conflict over roles and approach, then to agreed norms, and finally to effective, self-directed work. The team's early caution was forming. Open disagreement about roles, priorities, and decision rights is storming. In norming, members settle on shared expectations and ways of working, and in performing they work smoothly toward the goal. Storming is normal. HR and the team leader can help by clarifying roles and decision rights and agreeing on ground rules, which moves the team toward norming.

    Look for this next time: Conflict over roles and approach after a polite start marks Tuckman's storming stage; clear roles and ground rules help teams move on.

  19. Question 19 · Workplace

    A U.S. employee has worked for 14 months at a private company that has employed 60 people at her worksite for the past two years. She requests leave for her own serious health condition. In the past 12 months she worked 1,100 hours. Is she eligible for FMLA leave?

    1. Yes, because she has worked for the employer for more than 12 months
    2. No, because she has fewer than 1,250 hours of service in the past 12 months
    3. Yes, because her worksite has at least 50 employees within 75 miles
    4. No, because she must have worked for the employer for at least 24 straight months
    Show answer and explanation for question 19

    Correct answer: B · No, because she has fewer than 1,250 hours of service in the past 12 months

    Under the federal Family and Medical Leave Act, as the U.S. Department of Labor summarizes it, an employee is eligible only if all three conditions are met: at least 12 months of work for the employer, at least 1,250 hours of service in the 12 months before the leave starts, and work at a location where the employer has at least 50 employees within 75 miles. She meets the 12-month and 50-employee tests, but 1,100 hours falls short of 1,250, so she is not eligible for FMLA leave now. Meeting one or two of the conditions is not enough, and there is no 24-month requirement. She may still have rights under a state leave law, company policy, or the ADA, so HR should check those before answering.

    Look for this next time: FMLA eligibility needs all three: 12 months of employment, 1,250 hours in the last 12 months, and 50 employees within 75 miles.

  20. Question 20 · Workplace

    After a risk assessment, a company's HR and finance leaders decide to buy a cyber liability insurance policy to cover the costs of a breach of employee personal data, such as notification and credit monitoring. Which risk treatment does buying the policy represent?

    1. Risk avoidance
    2. Risk reduction
    3. Risk retention
    4. Risk sharing
    Show answer and explanation for question 20

    Correct answer: D · Risk sharing

    The 2026 SHRM BASK lists four risk treatments under Risk Management: avoidance, reduction, sharing, and retention. Buying insurance shares, or transfers, the financial consequences of a risk with another party, here the insurer, while the event itself can still happen. Avoidance would mean stopping the activity that creates the risk, such as no longer storing the data. Reduction lowers the likelihood or impact, for example with encryption, access controls, and training. Retention means accepting the risk and absorbing any loss, often with a budgeted reserve. In practice, organizations combine treatments: the policy does not replace the security controls that make a breach less likely.

    Look for this next time: Insurance is risk sharing: it transfers financial consequences to another party but does not prevent the event.

Use the sample well

The rationale matters more than the score.

A short set can show you what deserves another look. Twenty questions are a small sample, so this set cannot measure readiness for the 134-question SHRM-CP exam or predict a scaled score.

01

Answer before reviewing

For scenarios, choose the most effective response, not just an acceptable one; for knowledge items, choose the one correct answer. Then read why each other option falls short.

02

Read every rationale

Confirm why the best option fits, even when you were right.

03

Follow the pattern

Use recurring misses—not one score—to choose your next focus.