PRINCE2 7 Pract. · PeopleCert · Risk practice · Bank updated 2026-07-03
PRINCE2 7 Pract. practice questions: Risk practice
5 free questions from 12 on this area · answer and explanation for each · no sign-up
These 5 questions come from the Risk practice section of our PRINCE2 7 Pract. bank (12 questions on this area, which carries 7% of the real exam). Every question is original, with the correct answer explained and linked to the source it is drawn from.
1/5 · Risk practice
During a risk workshop, the project manager records a new risk in the risk register: 'Foreign exchange rate fluctuations may increase the cost of imported equipment.' The entry includes an estimated probability, impact and proximity, but the project manager leaves the risk owner field blank, intending to assign an owner later once a response has been agreed. Is this an appropriate way to record the risk?
AYes, the risk owner only needs to be assigned once a response has been selected, because the owner's sole role is to carry out the agreed response action.
BYes, assigning a risk owner is optional for risks relating to external factors such as exchange rates, since these are outside the project's control.
CNo, but only because the entry should have been given a risk actionee instead of a risk owner until a response is agreed.
DNo, a risk owner should be assigned as soon as the risk is identified and assessed, so that someone is accountable for monitoring the risk and progressing it toward a response, regardless of what that response turns out to be.
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2/5 · Risk practice · hard
A low-complexity, six-week internal project has a single delivery team and a simple risk profile. Instead of maintaining a separate risk register, the project manager records risks alongside issues in one combined 'issue and risk log', still capturing each risk's description, probability, impact, proximity and owner, and reviews it at every weekly team check-in. Is this tailoring of the Risk practice appropriate?
ANo, PRINCE2 mandates that the risk register and the issue register must always be maintained as two separate documents regardless of project size or complexity.
BNo, because combining risk and issue management removes the ability to assign a risk owner that is separate from an issue owner.
CYes, PRINCE2 practices must be tailored to context, and combining risk and issue information into one log is acceptable for a simple, low-complexity project provided the essential risk information and regular review discipline are still maintained.
DYes, because for short internal projects the Risk practice does not need to be applied at all, so any convenient recording method is acceptable.
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C is correct. PRINCE2 7 requires every practice, including Risk, to be tailored to the project's context rather than applied rigidly. For a simple, low-complexity project, combining the risk and issue registers into a single log is a valid tailoring choice, provided the mandatory risk information (description, probability, impact, proximity, owner) and a disciplined review cadence are retained.
↗ the official PRINCE2 7 Practitioner syllabus + 'Managing Successful Projects with PRINCE2, 7th Edition' (PeopleCert, 2023) — Risk practice
3/5 · Risk practice · hard
A stage plan sets a risk tolerance of no more than 5% forecast cost variance arising from residual risk exposure. Midway through the stage, several risks materialise and the combined effect pushes forecast cost variance to 9%. The project manager updates the risk register to reflect the new exposure and continues managing the individual risks using the agreed risk budget, without reporting the tolerance breach to the Project Board. How should this action be evaluated?
AAppropriate, because only time tolerance breaches must be escalated to the Project Board, while cost tolerance breaches caused by risk can be managed solely by the project manager.
BInappropriate, because exceeding the stage's risk tolerance is a tolerance breach that must be escalated to the Project Board via an exception report, rather than being absorbed by the project manager within the risk budget alone.
CAppropriate, because the risk budget exists precisely so the project manager can absorb any cost variance caused by risks without needing to escalate to the Project Board.
DInappropriate, but only because the project manager should have consulted the Senior Supplier informally rather than raising a formal exception to the Project Board.
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4/5 · Risk practice · easy
A project manager insists that risk management in PRINCE2 exists only to avoid negative outcomes, and refuses to log a chance to finish a work package early because a specialist supplier has unexpectedly become available. Which statement best reflects PRINCE2 guidance on this view?
AThe opportunity can only be treated as a risk once it materializes into a confirmed benefit, after which it moves from the benefits management approach into the risk register.
BPRINCE2 defines a risk as any uncertain event that could affect objectives either negatively or positively, so the early-completion possibility should be logged and managed in the risk register alongside threats.
CThe opportunity should be recorded in the issue register instead, since only threats belong in the risk register under PRINCE2.
DThe project manager is correct, because the risk management procedure exists purely to protect the project from threats, so opportunities fall outside the Risk practice and should be handled informally.
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B is correct. PRINCE2 defines a risk as an uncertain event or set of events that, should it occur, will have an effect on the achievement of the project's objectives — this effect can be negative (a threat) or positive (an opportunity). Both are identified, assessed and controlled through the same risk management procedure and recorded in the risk register with appropriate response categories, such as exploit or enhance for opportunities and avoid or reduce for threats.
↗ the official PRINCE2 7 Practitioner syllabus (PeopleCert, 2023) — Risk practice
5/5 · Risk practice
Partway through a stage, the aggregated exposure of open risks on the risk register rises above the threshold defined in the risk management approach. According to PRINCE2, what should the project manager do next?
AClose the current risk register and start a new one, since exceeding the tolerance threshold means the original risk management approach is no longer valid.
BEscalate the situation to the Project Board (or the next higher authority) via an exception report, since exceeding agreed risk tolerance is a defined trigger for escalation beyond the project manager's own authority.
CImmediately apply the avoid response to every open risk on the register so that aggregate exposure falls back under the threshold before reporting anything to the Project Board.
DNote the breach in the lessons log only, since risk tolerance in PRINCE2 is an informal guideline for reporting rather than a formal control mechanism.
Show answer & explanation
B is correct. Risk tolerance is the threshold level(s) of risk exposure that, when exceeded, requires escalation to the next level of management (typically the Project Board, or corporate/programme management), using the same exception-based escalation route as other tolerances. It is a formal governance control defined in the risk management approach, not an informal reporting convention.
↗ the official PRINCE2 7 Practitioner syllabus (PeopleCert, 2023) — Risk practice
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