4.5.1 Explain the Purpose of the ‘risk’ Practice (9.1) PRINCE2-FOUNDATION-VERSION-7 Practice Questions (Page 3)

Questions 11–15

1. 11application · medium

   A project team identifies an opportunity to use a new technology that could reduce project costs by 20%. However, the technology is not yet proven in the market. What should the project manager do to address this opportunity?

   • AImplement the technology immediately to capture the cost savings.
   • BPlan a response to exploit the opportunity while also considering the associated risks.
   • CReject the opportunity because of the uncertainty involved.
   • DRecord the opportunity in the risk register but take no further action.
   Reveal Solution Discussion Select an answer first
2. 12application · medium

   A project has a high-impact risk that a key supplier may fail to deliver critical components on time. The project manager wants to reduce the likelihood of this happening. Which response is most appropriate?

   • AAccept the risk and set aside a contingency budget for potential delays.
   • BTransfer the risk to the supplier by including penalty clauses in the contract.
   • CDevelop a backup supplier arrangement to be used if the primary supplier fails.
   • DWork with the supplier to improve their delivery processes and monitor their performance closely.
   Reveal Solution Discussion Select an answer first
4. 13foundation · easy

   Which PRINCE2 practice is directly supported by the risk practice when monitoring project progress?

   • AOrganization
   • BChange
   • CQuality
   • DProgress
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5. 14foundation · easy

   What does 'assessing' a risk involve in PRINCE2?

   • AEstimating the probability and impact of the risk on project objectives.
   • BDeciding whether to accept or avoid the risk.
   • CAssigning a risk owner to the risk.
   • DDocumenting the risk in the risk register.
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6. 15application · medium

   During a software development project, the team identifies a risk that a key vendor may go out of business, which would delay the project by three months. The project manager needs to assess this risk. What should be done first?

   • ADetermine the probability and impact of the vendor failure on the project's objectives.
   • BAdd the risk to the risk register and assign a risk owner.
   • CEscalate the risk to the project board for a decision.
   • DImmediately develop a contingency plan to find an alternative vendor.
   Reveal Solution Discussion Select an answer first