4.5.4 Define Key Concepts Related to the ‘risk’ Practice PRINCE2-FOUNDATION-VERSION-7 Practice Questions (Page 1)

Questions 1–5

1. 1foundation · easy

   In PRINCE2, what is the definition of risk tolerance?

   • AThe total amount of risk an organization is willing to accept
   • BThe likelihood that a risk will occur
   • CThe acceptable deviation from the risk appetite, often expressed as thresholds or limits
   • DThe process of identifying and assessing risks
   Reveal Solution Discussion Select an answer first
2. 2foundation · easy

   In PRINCE2, what is the 'cause' of a risk?

   • AThe impact on the project objectives if the risk occurs
   • BThe person responsible for managing the risk
   • CThe source or condition that gives rise to the risk
   • DThe uncertainty that may or may not happen
   Reveal Solution Discussion Select an answer first
4. 3foundation · easy

   In PRINCE2, what does 'risk impact' refer to?

   • AThe likelihood that the risk event will occur
   • BThe person responsible for managing the risk
   • CThe source or condition that gives rise to the risk
   • DThe effect on the project objectives if the risk occurs
   Reveal Solution Discussion Select an answer first
5. 4foundation · easy

   In PRINCE2, what does 'risk probability' refer to?

   • AThe impact on the project objectives if the risk occurs
   • BThe likelihood that the risk event will occur
   • CThe speed at which a risk must be responded to
   • DThe total number of risks identified in the project
   Reveal Solution Discussion Select an answer first
6. 5foundation · easy

   A risk response plan includes an action to 'train all team members on the new software.' Who is responsible for implementing this specific action?

   • AThe risk action owner
   • BThe risk owner
   • CThe project manager
   • DThe project board
   Reveal Solution Discussion Select an answer first