What is the primary purpose of the PRINCE2 risk technique?

To document risks only after they have occurred, for lessons learned

To eliminate all uncertainty from the project environment

To provide a step-by-step procedure for identifying, assessing, and managing risks throughout the project

To assign a single owner for all project risks, ensuring accountability

What is the purpose of the risk budget in PRINCE2?

To fund risk responses and actions defined in the risk management plan

To reward the project team for successful risk management

To cover all project costs overruns

To replace the need for a contingency budget

A project manager is planning the risk budget for a project. The project board has approved a specific amount for risk responses. What is the PRIMARY purpose of the risk budget?

To pay for risk identification activities

To fund the implementation of risk responses

To cover any project cost overruns

To compensate stakeholders for losses

A project manager is updating the risk register after a new risk was identified. The risk has a high probability and a high impact. The project board has a low appetite for this type of risk. According to the PRINCE2 risk management procedure, what should the project manager do NEXT?

Implement the risk response immediately.

Communicate the risk to stakeholders and wait for their decision.

Plan a risk response and record it in the risk register.

Update the risk budget to cover potential losses.

Home/Organizations/PeopleCert/Exam PRINCE2-FOUNDATION-VERSION-7/4.5.6 Describe the PRINCE2 technique for the ‘risk’ practice (9.3.1)/Practice Page 4

PRINCE2 Foundation (Version 7)

Domain 4Objective 31

4.5.6 Describe the PRINCE2 Technique for the ‘risk’ Practice (9.3.1) 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 32 practice questions to prepare you well beyond it. (estimate)

32questions here

7free pages

8concepts

60%of the exam

Curriculum map

Understand key concepts relating to projects and PRINCE2
Understand how the PRINCE2 principles underpin the PRINCE2 method
Understand the importance of people in successful projects
Understand the PRINCE2 practices and how they are applied throughout the project
Understand the PRINCE2 processes and how they are carried out throughout the project

8 Concepts in This Objective

Risk technique definition
Risk management procedure steps
Risk identification techniques
Risk assessment and probability impact
Risk response planning
Risk implementation and communication
Risk register and risk budget
Risk management in PRINCE2 roles

All 7 pages of PRINCE2-FOUNDATION-VERSION-7 4.5.6 Describe the PRINCE2 technique for the ‘risk’ practice (9.3.1) practice

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7

Questions 16–20

16foundation · easy
Which PRINCE2 role is responsible for reviewing whether risk management activities are being performed correctly?
Select an answer first
17foundation · easy
What is the primary purpose of the PRINCE2 risk technique?
Select an answer first
18foundation · easy
What is the purpose of the risk budget in PRINCE2?
Select an answer first
19application · medium
A project manager is planning the risk budget for a project. The project board has approved a specific amount for risk responses. What is the PRIMARY purpose of the risk budget?
Select an answer first
20application · medium
A project manager is updating the risk register after a new risk was identified. The risk has a high probability and a high impact. The project board has a low appetite for this type of risk. According to the PRINCE2 risk management procedure, what should the project manager do NEXT?
Select an answer first

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Other objectives in Understand the PRINCE2 practices and how they are applied throughout the project

4.1 Explain the Purpose of PRINCE2 Management Products, Including4 pages of practice
4.1.1 Explain the Purpose of the ‘business Case’ Practice (5.1)5 pages of practice
4.1.2 Describe the Key Relationships Between the ‘business Case’ Practice and the Principles (5.7, Tab 5.2)6 pages of practice
4.1.3 Explain the Purpose of the Key Management Products Required to Support the ‘business Case’ Practice (5.5)3 pages of practice
4.1.4 Define Key Concepts Related to the ‘business Case’ Practice: (5.1)4 pages of practice
4.1.5 Describe the Guidance for Effective Management of the Business Case, Including: (5.2)4 pages of practice
4.1.6 Describe the PRINCE2 Technique for the ‘business Case’ Practice (5.3.1)6 pages of practice
4.2.1 Explain the Purpose of the ‘organizing’ Practice (6.1)5 pages of practice
4.2.2 Describe the Key Relationships Between the ‘organizing’ Practice and the Principles (6.7, Tab 6.5)7 pages of practice
4.2.3 Explain the Purpose of the Key Management Products Required to Support the ‘organization’ Practice: (6.5)4 pages of practice
4.2.4 Define Key Concepts Related to the ‘organizing’ Practice5 pages of practice
4.2.5 Describe the Guidance for Effective Organizing Of4 pages of practice
4.2.6 Describe the PRINCE2 Technique for the ‘organizing’ Practice (6.3.1)6 pages of practice
4.3.1 Explain the Purpose of the ‘plans’ Practice (7.1)4 pages of practice
4.3.2 Describe the Key Relationships Between the ‘plans’ Practice and the Principles (7.7, Tab 7.2)6 pages of practice
4.3.3 Explain the Purpose of the Key Management Products Required to Support the ‘plans’ Practice: (7.5)4 pages of practice
4.3.4 Define Key Concepts Related to the ‘plans’ Practice6 pages of practice
4.3.5 Describe the Guidance for Effective Management of Plans5 pages of practice
4.3.6 Describe the PRINCE2 Technique for the ‘plans’ Practice (7.3.1)7 pages of practice
4.4.1 Explain the Purpose of the ‘quality’ Practice (8.1)6 pages of practice
4.4.2 Describe the Key Relationships Between the ‘quality’ Practice and the Principles (8.7, Tab 8.3)6 pages of practice
4.4.3 Explain the Purpose of the Key Management Products Required to Support the ‘quality’ Practice: (8.5)5 pages of practice
4.4.4 Define Key Concepts Related to the ‘quality’ Practice5 pages of practice
4.4.5 Describe the Guidance for Effective Management of Quality4 pages of practice
4.4.6 Describe the PRINCE2 Technique for the ‘quality’ Practice (8.3.1)7 pages of practice
4.5.1 Explain the Purpose of the ‘risk’ Practice (9.1)6 pages of practice
4.5.2 Describe the Key Relationships Between the ‘risk’ Practice and the Principles (9.7, Tab 9.4)5 pages of practice
4.5.3 Explain the Purpose of the Key Management Products Required to Support the ‘risk’ Practice: (9.5)4 pages of practice
4.5.4 Define Key Concepts Related to the ‘risk’ Practice5 pages of practice
4.5.5 Describe the Guidance for Effective Management of Risk7 pages of practice
4.6.1 Explain the Purpose of the ‘issues’ Practice (10.1)4 pages of practice
4.6.2 Describe the Key Relationships Between the ‘issues’ Practice and the Principles (10.7, Tab 10.3)6 pages of practice
4.6.3 Explain the Purpose of the Key Management Products Required to Support the ‘issues’ Practice: (10.5)5 pages of practice
4.6.4 Define Key Concepts Related to the ‘issues’ Practice4 pages of practice
4.6.5 Describe the Guidance for Effective Management of Issues3 pages of practice
4.6.6 Describe the PRINCE2 Technique for the ‘issues’ Practice (10.3.1)6 pages of practice
4.7.1 Explain the Purpose of the ‘progress’ Practice (11.1)3 pages of practice
4.7.2 Describe the Key Relationships Between the ‘progress’ Practice and the Principles (11.7, Tab 11.4)6 pages of practice
4.7.3 Explain the Purpose of the Key Management Products Required to Support the ‘progress’ Practice: (11.5)4 pages of practice
4.7.4 Define Key Concepts Related to the ‘progress’ Practice4 pages of practice
4.7.5 Describe the Guidance for Effective Management of Progress5 pages of practice
4.7.6 Describe the PRINCE2 Technique for the ‘progress’ Practice (11.3.1)5 pages of practice

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