4.5.5 Describe the Guidance for Effective Management of Risk PRINCE2-FOUNDATION-VERSION-7 Practice Questions (Page 3)

Questions 11–15

1. 11application · medium

   A project manager is creating the risk management approach for a project that involves a high degree of uncertainty. The project board wants to ensure that risk responses can be funded without delaying the project. What should the project manager include in the risk management approach?

   • AA schedule of risk review meetings with the project board
   • BA detailed risk register with all potential risks and their responses
   • CA list of risk response types that will be used for all risks
   • DA risk budget with defined criteria for its use and a process for approval
   Reveal Solution Discussion Select an answer first
2. 12foundation · easy

   What is the main purpose of risk control in PRINCE2?

   • ATo evaluate the probability and impact of each risk
   • BTo create the risk management approach and risk budget
   • CTo identify all risks at the start of the project and document them in the risk register
   • DTo implement risk responses and monitor the effectiveness of risk management throughout the project
   Reveal Solution Discussion Select an answer first
4. 13application · medium

   A project team identifies a risk that a key supplier may go out of business. The team decides to take out an insurance policy to cover the financial loss if this happens. Which risk response type does this represent?

   • AReduce
   • BTransfer
   • CAccept
   • DShare
   Reveal Solution Discussion Select an answer first
5. 14application · medium

   During a project, a risk that was assessed as low probability has now occurred. The team had accepted the risk without a specific response. What should the project manager do?

   • AImplement a fallback plan if one exists, or develop a response now to manage the impact
   • BUpdate the risk register and close the risk
   • CDo nothing because the risk was accepted
   • DEscalate the risk to the project board immediately
   Reveal Solution Discussion Select an answer first
6. 15expert · hard

   A project manager is planning a project with a tight budget and no contingency. The project board has asked for a risk management approach that ensures risk responses can be funded without exceeding the budget. The project manager has identified several risks that require responses. What is the best way to handle the risk budget?

   • AUse the risk budget only for risks that have a high probability
   • BDo not set a risk budget because the project has no contingency
   • CInclude a risk budget in the project budget, with criteria for its use and a process for approval
   • DSet the risk budget equal to the total project budget
   Reveal Solution Discussion Select an answer first