4.5.5 Describe the Guidance for Effective Management of Risk PRINCE2-FOUNDATION-VERSION-7 Practice Questions (Page 4)

Questions 16–20

1. 16foundation · easy

   In PRINCE2, what does the 'fallback' risk response type involve?

   • ASharing the risk with another party to reduce its impact
   • BAccepting the risk without any action
   • CChanging the project plan to avoid the risk entirely
   • DImplementing a pre-defined plan if the original risk response fails
   Reveal Solution Discussion Select an answer first
2. 17application · medium

   A project manager is conducting a risk workshop for a new project. The team has access to lessons learned from previous projects. How should the project manager use these lessons to improve risk identification?

   • AUse lessons learned to replace the need for a risk workshop
   • BUse lessons learned to determine the risk budget for the project
   • CUse lessons learned to set the risk tolerance of the project board
   • DReview lessons learned to identify risks that occurred in similar projects and consider them for the current project
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4. 18application · medium

   A project manager notices that team members are only reporting risks that are almost certain to occur, while ignoring unlikely but high-impact risks. The project manager wants to encourage a more balanced risk culture. What should the project manager do?

   • ALimit risk reporting to risks that have occurred in previous projects
   • BAsk the project board to set a minimum probability threshold for reporting
   • COnly reward reports of risks that have a high probability
   • DEncourage reporting of all risks, regardless of probability, and emphasize the value of identifying low-probability risks
   Reveal Solution Discussion Select an answer first
5. 19expert · hard

   A project manager is managing a project where a risk response has been implemented to reduce the impact of a potential system failure. The response involves regular backups and a recovery plan. During a review, the team discovers that the backups have not been tested and the recovery plan is outdated. What should the project manager do?

   • AContinue with the current response because the risk has not occurred
   • BRemove the risk from the register because the response is in place
   • CUpdate the recovery plan and test the backups to ensure the response is effective
   • DEscalate the issue to the project board immediately
   Reveal Solution Discussion Select an answer first
6. 20expert · hard

   A project manager is trying to foster a positive risk culture in a team that has historically hidden risks to avoid blame. The project manager has introduced a risk register and regular review meetings, but team members are still reluctant to report risks. What is the most effective additional action?

   • AOnly discuss risks that have a high probability in meetings
   • BPublicly acknowledge and reward team members who report risks, regardless of whether the risks materialize
   • CMake risk reporting mandatory and impose penalties for not reporting
   • DLimit risk reporting to the project manager to reduce exposure
   Reveal Solution Discussion Select an answer first