In PRINCE2, what is the primary responsibility of the risk owner?

To be accountable for the management and monitoring of the risk

To implement the specific actions agreed upon to respond to the risk

To identify all risks on the project

To make the final decision on all risk responses

A company has a risk appetite that allows for a 15% budget overrun on projects. However, for a specific project, the project board has set a tolerance of 10%. During the project, a risk is identified that could cause a 12% budget overrun. What should the project manager do?

Escalate the risk to the project board because it exceeds the project tolerance

Accept the risk because it is within the company's risk appetite

Reduce the risk impact to 10% to fit within the tolerance

Ignore the risk because it is below the company's risk appetite

A supplier has informed the project manager that they will be late delivering a key component. This is a certain event that has already happened. How should this be classified in PRINCE2?

As a risk, because it will have a negative impact on the project schedule

As an opportunity, because it allows the project to explore alternative suppliers

As an issue, because it is a certain event that has already occurred

As a threat, because it is a negative event that will affect the project

A project manager has limited resources to address risks. Risk A has a 10% probability and a $100,000 impact. Risk B has a 50% probability and a $15,000 impact. Risk C has a 30% probability and a $40,000 impact. Which risk should be addressed first based on risk exposure?

Risk A, because it has the highest impact

Risk C, because it has the highest exposure

Risk B, because it has the highest probability

Risk A, because it has the highest exposure

PRINCE2 Foundation (Version 7)

Domain 4Objective 29

4.5.4 Define Key Concepts Related to the ‘risk’ Practice PRINCE2-FOUNDATION-VERSION-7 Practice Questions (Page 4)

Part of the Understand the PRINCE2 practices and how they are applied throughout the project domain, which accounts for 60% of the PRINCE2-FOUNDATION-VERSION-7 exam. PeopleCert does not publish an official question count, but from its 60-minute exam (~25–40 total, ~15–24 in this domain), expect 1–1 from this objective — we provide 25 practice questions to prepare you well beyond it. (estimate)

25questions here

5free pages

8concepts

60%of the exam

Questions 16–20

16foundation · easy
In PRINCE2, what is the primary responsibility of the risk owner?
Select an answer first
17expert · hard
A company has a risk appetite that allows for a 15% budget overrun on projects. However, for a specific project, the project board has set a tolerance of 10%. During the project, a risk is identified that could cause a 12% budget overrun. What should the project manager do?
Select an answer first
18foundation · easy
A supplier has informed the project manager that they will be late delivering a key component. This is a certain event that has already happened. How should this be classified in PRINCE2?
Select an answer first
19application · medium
A financial services company has a high risk appetite for innovation projects but a low risk appetite for compliance-related projects. For a new compliance project, the project board sets a threshold that any risk with a potential fine exceeding $100,000 must be escalated immediately. What does the $100,000 threshold represent?
Select an answer first
20expert · hard
A project manager has limited resources to address risks. Risk A has a 10% probability and a $100,000 impact. Risk B has a 50% probability and a $15,000 impact. Risk C has a 30% probability and a $40,000 impact. Which risk should be addressed first based on risk exposure?
Select an answer first

Finished these 5 questions?

Review the revealed explanations, or continue through the curriculum.

Next 5 questions →Back to PRINCE2-FOUNDATION-VERSION-7

Free Basic Practice is a study aid with revealable answers — not a scored exam. Examers.io is independent and not affiliated with or endorsed by PeopleCert. “PRINCE2-FOUNDATION-VERSION-7” is a trademark of its owner, used for identification only.