PRINCE2 7 Found. practice questions: Risk practice

5 free questions from 13 on this area · answer and explanation for each · no sign-up

These 5 questions come from the Risk practice section of our PRINCE2 7 Found. bank (13 questions on this area, which carries 8% of the real exam). Every question is original, with the correct answer explained and linked to the source it is drawn from.

Start 6 free in study mode → All PRINCE2 7 Found. sample questions

1/5 · Risk practice · easy

Which management product provides an ongoing record of identified threats and opportunities, including their status, throughout the project?

ARisk register

BLessons log

CRisk management approach

DIssue register

Show answer & explanation

A is correct. The risk register is a dynamic log created and maintained under the risk practice to track each identified threat and opportunity, its assessment, and its current status. It is distinct from the risk management approach, which sets out the overall procedure for managing risk on the project.
↗ the official PRINCE2 7 Foundation syllabus + PRINCE2 7th edition manual 'Managing Successful Projects' (PeopleCert, 2023) — Risk practice

2/5 · Risk practice

In PRINCE2 7, 'proximity' is assessed alongside probability and impact when evaluating a risk. What does proximity refer to?

AThe physical or organizational distance between the risk owner and the risk actionee.

BThe timing of a risk — that is, when it might occur and when its effects would be felt.

CHow closely a risk is related to other risks already recorded in the risk register.

DThe degree of confidence in the accuracy of the impact assessment.

Show answer & explanation

B is correct. Probability, impact and proximity together form the basis for prioritizing and estimating risks. Proximity indicates when the risk event might occur, which helps determine how urgently a response is needed — a high-impact risk with near proximity generally demands more immediate attention than one with distant proximity.
↗ the official PRINCE2 7 Foundation syllabus + PRINCE2 7th edition manual 'Managing Successful Projects' (PeopleCert, 2023) — Risk practice

3/5 · Risk practice

During risk assessment, the team identifies an opportunity: early delivery of a key component could allow the project to finish ahead of schedule. The project manager reallocates additional resources specifically to increase the likelihood of this early delivery happening. Which response to the opportunity has been selected?

AEnhance

BShare

CReject

DExploit

Show answer & explanation

A is correct. Enhance is the opportunity-response equivalent of reduce for threats: it increases the probability and/or impact of a positive risk without guaranteeing it will occur. Exploit is the stronger response used when the project wants to make certain an opportunity is realized, analogous to avoid for threats.
↗ the official PRINCE2 7 Foundation syllabus + PRINCE2 7th edition manual 'Managing Successful Projects' (PeopleCert, 2023) — Risk practice

4/5 · Risk practice · easy

The project manager is preparing a document during initiation that will govern how uncertainty is handled for the rest of the project. According to PRINCE2 7, which statement best describes what this document defines?

AIt defines the risk management procedure to be followed (identifying, assessing, planning and implementing responses), together with tools, techniques, timing, roles, responsibilities and the project's risk tolerances.

BIt justifies the project's continued investment by weighing expected costs against benefits, including a summary of major threats to those benefits.

CIt is solely a financial reserve set aside within the project budget to fund the implementation of agreed risk responses.

DIt lists every threat and opportunity currently identified for the project, along with their probability, impact and proximity, and tracks their status as the project proceeds.

Show answer & explanation

A is correct. The risk management approach is a practice-level document produced during initiation that specifies how risk will be managed on the project: the procedure, tools and techniques, roles and responsibilities, and tolerances. It should not be confused with the risk register (which records individual risks) or the risk budget (a financial reserve for responses).
↗ the official PRINCE2 7 Foundation syllabus (PeopleCert, 2023) — Risk practice

5/5 · Risk practice

During planning, the team notes that if a key supplier delivers materials two weeks early, the project could finish ahead of schedule and capture an early-completion bonus identified in the business case. The project manager renegotiates the supplier contract to include incentive payments for early delivery, aiming to make the early delivery more likely without guaranteeing it will happen. Which response to this opportunity is being applied?

AReject

BEnhance

CExploit

DShare

Show answer & explanation

B is correct. PRINCE2 7 distinguishes Exploit, which seizes an opportunity to guarantee it happens, from Enhance, which increases the probability and/or impact of an opportunity that remains uncertain. Offering a supplier an incentive to try to deliver early raises the likelihood of the benefit without eliminating the uncertainty, so it is Enhance rather than Exploit.
↗ the official PRINCE2 7 Foundation syllabus (PeopleCert, 2023) — Risk practice

Practise all 13 Risk practice questions - start free → See the whole PRINCE2 7 Found. bank

Other PRINCE2 7 Found. areas

The same kind of free sample for every other section of the PRINCE2 7 Found. bank:

Key concepts of projects and PRINCE27 q The PRINCE2 principles13 q People in successful projects17 q Business Case practice14 q Organizing practice14 q Plans practice12 q Quality practice13 q Issues practice13 q Progress practice11 q The PRINCE2 processes14 q

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