What additional risk is there in the HR Director failing to act once the situation has been identified?

Consider the Following Scenario: It has been brought to the attention of the HR Director that the Chief Operating Officer is planning to hire his brother-in-law as the Director of Procurement, without consideration of the candidates which have been screened by HR based upon criteria the Chief Operating Officer established for the job search and notified of pending interviews. As the HR Director in this situation:
Identify a critical first step Human Resources must take when legal risks arise in such compromising situations.
Explain the critical role of Human Resources in ensuring the organization’s regulatory compliance as an important component in the overall risk management program.
Explain at least two risks of failing to recognize potential legal risks in this scenario.
What additional risk is there in the HR Director failing to act once the situation has been identified?

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