4.5.5 Describe the Guidance for Effective Management of Risk PRINCE2-FOUNDATION-VERSION-7 Practice Questions (Page 1)

Questions 1–5

1. 1foundation · easy

   What is the primary role of metrics in risk management?

   • ATo eliminate the need for a risk register
   • BTo predict the exact date when a risk will occur
   • CTo replace the need for qualitative risk assessment
   • DTo measure the effectiveness of risk responses and track changes in risk exposure
   Reveal Solution Discussion Select an answer first
2. 2foundation · easy

   In PRINCE2 risk analysis, what is the purpose of estimating the probability and impact of a risk?

   • ATo assign a risk owner to the risk
   • BTo identify the root cause of the risk
   • CTo determine the risk's overall magnitude and prioritize it against other risks
   • DTo decide whether the risk is a threat or an opportunity
   Reveal Solution Discussion Select an answer first
4. 3foundation · easy

   What is a common decision bias that can affect risk management?

   • AConfirmation bias, where people seek evidence that supports their existing beliefs
   • BOptimism bias, where people underestimate the likelihood of negative events
   • CAnchoring bias, where people rely too heavily on the first piece of information
   • DHindsight bias, where people believe past events were predictable
   Reveal Solution Discussion Select an answer first
5. 4foundation · easy

   In PRINCE2, when should risks be monitored and reviewed?

   • AContinuously throughout the project lifecycle
   • BOnly at the end of each stage
   • COnly when a risk materializes
   • DOnly during the Initiating a Project process
   Reveal Solution Discussion Select an answer first
6. 5foundation · easy

   What is the primary purpose of the risk management approach in PRINCE2?

   • ATo assign a risk owner to each identified risk
   • BTo list all potential risks that could affect the project
   • CTo allocate a specific amount of money for responding to identified threats
   • DTo document the procedures for identifying, assessing, and controlling risks throughout the project
   Reveal Solution Discussion Select an answer first