4.5.1 Explain the Purpose of the ‘risk’ Practice (9.1) PRINCE2-FOUNDATION-VERSION-7 Practice Questions (Page 2)

Questions 6–10

1. 6application · medium

   A project manager is updating the project plan to reflect the current risk status. The risk register shows that a major risk has been reduced, but a new risk has emerged. How should the risk practice integrate with the plans practice in this situation?

   • AUpdate the project plan to include the new risk's potential impact on schedule and budget, and adjust the plan accordingly.
   • BRemove the new risk from the register to avoid complicating the plan.
   • CKeep the project plan unchanged because the risk register is a separate document.
   • DOnly update the risk register and inform the project board of the changes.
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2. 7expert · hard

   A project manager is developing the risk management approach and needs to decide how often risks should be reviewed. The project is in a stable environment, but the organization wants to ensure that risks are not overlooked. What is the most appropriate review frequency?

   • AReview risks only at the start and end of the project.
   • BReview risks only when a risk materializes.
   • CReview risks at each stage boundary and whenever a significant change occurs.
   • DReview risks daily to ensure nothing is missed.
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4. 8foundation · easy

   What does ongoing risk control and monitoring involve in PRINCE2?

   • AClosing the risk register after the project starts.
   • BPlanning responses for each risk once.
   • CIdentifying risks only at the start of the project.
   • DReviewing and updating the status of risks regularly.
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5. 9application · medium

   A project team is using a risk workshop to identify risks. The facilitator asks participants to consider both threats and opportunities. One participant suggests that a new regulation could create a market advantage. How should this suggestion be handled?

   • AEscalate it to the project board immediately.
   • BInclude it in the project plan as a guaranteed benefit.
   • CRecord it as an opportunity in the risk register and assess its probability and impact.
   • DDismiss it because the workshop is for identifying threats only.
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6. 10application · medium

   A project manager is creating the risk management approach for a project in a highly regulated industry. The organization requires that all risk assessments be documented and reviewed by an independent auditor. What should the risk management approach include?

   • AA procedure for documenting risk assessments and scheduling independent audits.
   • BThe project's budget and timeline for completing the risk management activities.
   • CA list of all identified risks and their responses.
   • DThe names of the project team members responsible for risk management.
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