A project manager is using the plans practice to create a stage plan. The risk register shows a high-impact risk that could occur during this stage. How should the risk practice inform the stage plan?

Include contingency allowances and specific risk responses in the stage plan.

Delay the stage until the risk is resolved.

Add the risk to the project plan but not the stage plan.

Exclude the risk from the stage plan to avoid alarming stakeholders.

A project has an opportunity to reduce costs by using a new material, but the material is untested in the project's environment. The project manager must decide how to respond. What is the most appropriate response?

Use the material immediately to capture the cost savings.

Reject the material because it is untested.

Use the material only if the project is behind schedule.

Run a pilot test of the material before committing to full use.

What is the purpose of identifying risks in PRINCE2?

To decide which risks to accept.

To find uncertainties that could affect the project's objectives.

To assign a risk budget for the project.

To eliminate all risks from the project.

A project manager is assessing a risk that has a high probability but low impact. The project board has a limited budget for risk responses. Which action is most appropriate?

Accept the risk because the impact is low, and monitor it during the project.

Transfer the risk to a third party to eliminate the impact.

Escalate the risk to the project board for a decision.

Implement a costly response to reduce the probability further.

What is the purpose of planning risk responses in PRINCE2?

To assign a probability and impact to each risk.

To identify all possible risks in the project.

To decide how to mitigate threats and exploit opportunities.

To monitor risks throughout the project.

Home/Organizations/PeopleCert/Exam PRINCE2-FOUNDATION-VERSION-7/4.5.1 Explain the purpose of the ‘risk’ practice (9.1)/Practice Page 5

PRINCE2 Foundation (Version 7)

Domain 4Objective 26

4.5.1 Explain the Purpose of the ‘risk’ Practice (9.1) PRINCE2-FOUNDATION-VERSION-7 Practice Questions (Page 5)

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 30 practice questions to prepare you well beyond it. (estimate)

30questions here

6free pages

6concepts

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

6 Concepts in This Objective

Purpose of the risk practice
Risk management approach
Risk identification and assessment
Risk response planning
Risk control and monitoring
Integration with other practices

All 6 pages of PRINCE2-FOUNDATION-VERSION-7 4.5.1 Explain the purpose of the ‘risk’ practice (9.1) practice

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

Questions 21–25

21expert · hard
A project manager is using the plans practice to create a stage plan. The risk register shows a high-impact risk that could occur during this stage. How should the risk practice inform the stage plan?
Select an answer first
22expert · hard
A project has an opportunity to reduce costs by using a new material, but the material is untested in the project's environment. The project manager must decide how to respond. What is the most appropriate response?
Select an answer first
23foundation · easy
What is the purpose of identifying risks in PRINCE2?
Select an answer first
24expert · hard
A project manager is assessing a risk that has a high probability but low impact. The project board has a limited budget for risk responses. Which action is most appropriate?
Select an answer first
25foundation · easy
What is the purpose of planning risk responses in PRINCE2?
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
4.5.2 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
4.5.6 Describe the PRINCE2 Technique for the ‘risk’ Practice (9.3.1)7 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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