4.5.3 Explain the Purpose of the Key Management Products Required to Support the ‘risk’ Practice: (9.5) PRINCE2-FOUNDATION-VERSION-7 Practice Questions (Page 3)

Questions 11–15

1. 11application · medium

   A project manager is setting up a new project and needs to document how risk management will be performed. The organization requires that all projects use a standard risk categorization scheme and that risk reviews occur at each stage boundary. Where should the project manager record these requirements?

   • AIn the risk register, which is part of the project log
   • BIn the business case, under the investment appraisal section
   • CIn the project plan, within the schedule of activities
   • DIn the risk management approach, which is part of the project initiation documentation (PID)
   Reveal Solution Discussion Select an answer first
2. 12foundation · easy

   Which management product is used to record the details of each identified risk, such as its cause, probability, and impact?

   • AIssue register
   • BRisk management approach
   • CLessons log
   • DRisk register
   Reveal Solution Discussion Select an answer first
4. 13application · medium

   A project team has identified a risk that, if it occurs, would require a significant change to the project's scope. The project manager needs to record the risk and its potential impact on the project objectives. Which management product should be used?

   • AThe issue register, recording the scope change as an issue
   • BThe risk register, documenting the risk and its potential impact
   • CThe business case, updating the benefits forecast
   • DThe risk management approach, defining the scope change procedure
   Reveal Solution Discussion Select an answer first
5. 14foundation · easy

   What is the purpose of the risk management approach, which is part of the Project Initiation Documentation (PID)?

   • ATo record the details of each individual risk as they are identified during the project
   • BTo provide a detailed plan of activities for the project's risk management team
   • CTo list all potential risks that could affect the project's business case
   • DTo define the procedures for identifying, assessing, and controlling risks throughout the project
   Reveal Solution Discussion Select an answer first
6. 15expert · hard

   A project manager is managing a project where a risk has been identified that could cause a delay to a critical milestone. The risk owner has proposed a response that would cost more than the project's contingency budget. The project manager must decide how to proceed. The project board has delegated authority to the project manager to approve responses up to a certain cost threshold, but this response exceeds it. What should the project manager do?

   • AApprove the response because the project manager has authority to manage risks
   • BReject the response and close the risk in the risk register
   • CRecord the risk and the proposed response in the risk register, and escalate the approval to the project board
   • DUpdate the risk management approach to increase the project manager's approval threshold
   Reveal Solution Discussion Select an answer first