Question: Hello, I need help with this question Part 2: AC6109 Exam Question (adapted) HR Asia Ltd (HRA) is one of the largest recruitment agencies operating
Hello, I need help with this question
Part 2: AC6109 Exam Question (adapted) HR Asia Ltd (HRA) is one of the largest recruitment agencies operating in Asian growth cities, including Singapore (headquarters), Shanghai, Beijing, Guangzhou and Kuala Lumpur. In this highly-competitive business, HRA relies heavily on its pool of experienced recruitment consultants. HRA operates in two primary segments, namely, permanent placement and flexible staffing. The permanent placement business requires consultants to have in-depth knowledge of their industry and functional specialisation. The consultants help to identify candidates and facilitate clients' selection. Upon successful placement, clients are charged a fee based on a pre-agreed percentage, which takes into account factors such as seniority of the candidate and city of operation. One critical success factor of the business is the thorough vetting of the candidates, such as their qualification, career history and performance. However, HRA has faced resource constraints in performing thorough independent background checks in certain cities. The growing trend of candidates seeking work-life balance and generally towards less formal, long-term forms of employment, provide a huge supply of candidates available for contract, temporary and part-time employment. On the demand side, the evolving global economy has prompted corporate clients towards flexible staffing solutions, to provide greater controls over operating costs and talent deployment. HRA employs candidates as contractor employees on a contract basis and places them with the clients, with tenures ranging from days to months. HRA first pays the salaries and employmentbenefits to the contractor employees (at least on a monthly basis), and then bills payroll costs plus a margin to the clients. There have been cases where new clients ran into funding issues and defaulted on payments. Clients enter agreements that prohibit them from hiring, directly or indirectly, HRA's contractor employees for a certain period following the completion of their services. However, on many occasions, clients are willing to wait out the prohibition period before engaging the contractor employees on a permanent basis. Required Describe 4 key risks that could affect HRA's operations and recommend appropriate risk responses. Limit your discussion to one key risk each, whereby the risk response of avoidance, reduction, sharing and pursing potential opportunity is most appropriate. Tabulate your answers as follows: Risk Risk Risk Description Response Type Response Description Avoidance 2 Reduction Sharing 4 Pursue Opportunity
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