4.5.5 Describe the Guidance for Effective Management of Risk PRINCE2-FOUNDATION-VERSION-7 Practice Questions (Page 5)

Questions 21–25

1. 21application · medium

   A project team identifies a risk that a key piece of equipment may fail during testing. The team decides to purchase a backup unit from a different supplier to use if the primary fails. Which risk response type does this represent?

   • ATransfer
   • BFallback
   • CAccept
   • DReduce
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2. 22application · medium

   A project team is assessing a risk that a key supplier may deliver late. Historical data from similar projects shows that this supplier has been late 20% of the time, and when late, the delay has averaged 10 days. The project manager needs to estimate the risk's overall impact on the project schedule. Which approach best uses the available data?

   • ACalculate the expected impact by multiplying the probability (20%) by the average delay (10 days), giving an expected delay of 2 days
   • BUse the worst-case delay of 10 days as the impact, since the probability is already considered separately
   • CIgnore the historical data because past performance does not guarantee future results
   • DRecord the risk as high impact because any delay is unacceptable to the project
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4. 23application · medium

   A project team is reluctant to report risks because they fear being blamed for problems. The project manager wants to foster a positive risk culture. Which action is most effective?

   • AReward only those who report risks that later materialize
   • BImplement a strict reporting process with penalties for missed risks
   • CEncourage open reporting by emphasizing that risks are opportunities to improve, not failures to punish
   • DLimit risk reporting to the project manager to reduce exposure
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5. 24foundation · easy

   In PRINCE2, what is the first step in the recommended risk analysis procedure?

   • AEstimate the probability and impact
   • BIdentify the risks
   • CEvaluate the risks
   • DPlan risk responses
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6. 25application · medium

   A project manager is reviewing a risk that has a 10% probability of causing a significant delay. The project manager recently experienced a similar delay on another project and is now overestimating the impact of this risk. Which decision bias is affecting the project manager, and what is the best mitigation?

   • AAnchoring bias; mitigate by using the first estimate as a reference point
   • BConfirmation bias; mitigate by seeking opinions that support the initial assessment
   • COptimism bias; mitigate by increasing the probability estimate
   • DAvailability bias; mitigate by using historical data and objective analysis
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