4.5.1 Explain the Purpose of the ‘risk’ Practice (9.1) PRINCE2-FOUNDATION-VERSION-7 Practice Questions (Page 6)

Questions 26–30

1. 26expert · hard

   A project manager is reviewing the risk register and finds that several risks have not been updated for two months. The project is in a period of high change. What should the project manager do?

   • AClose all risks that have not been updated to simplify the register.
   • BWait for the next scheduled stage boundary to update the risks.
   • CEscalate the lack of updates to the project board.
   • DConduct an immediate review of all risks to update their status and reassess their probability and impact.
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2. 27application · medium

   A project manager is setting up a new project to upgrade a customer-facing payment system. The executive board wants to ensure that potential issues are handled proactively rather than reactively. Which action best reflects the purpose of the PRINCE2 risk practice in this context?

   • AEstablish a risk management approach that defines how risks will be identified, assessed, and controlled throughout the project.
   • BConduct a single risk workshop at the beginning of the project to identify all possible risks.
   • CAssign a risk owner to each potential issue after the project has started to ensure accountability.
   • DCreate a detailed project plan that lists all activities and milestones to ensure the project stays on schedule.
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4. 28foundation · easy

   Why is it important to review and update risk status during a project?

   • ABecause it helps to eliminate all risks.
   • BBecause the risk register is only updated at the end.
   • CBecause risks can change as the project progresses.
   • DBecause it is a requirement of the project plan.
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5. 29foundation · easy

   What is the primary purpose of the PRINCE2 risk practice?

   • ATo assign a risk owner for every risk identified in the project.
   • BTo document every possible risk that could occur during the project.
   • CTo identify, assess, and control uncertainties that could affect the project's objectives.
   • DTo ensure all project risks are eliminated before the project starts.
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6. 30application · medium

   A project manager is developing the risk management approach for a construction project. The organization has a low tolerance for schedule delays but is willing to accept cost overruns within a certain range. What should the risk management approach specify to reflect this?

   • AA list of all potential risks and their corresponding responses.
   • BRisk thresholds for time and cost, including the organization's appetite for each type of risk.
   • CThe roles and responsibilities of the project assurance team.
   • DThe project's overall budget and timeline for completion.
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