PRINCE2F PRINCE2 Practices Practice Question
A Project Manager is reviewing the Risk Register and notices that a risk has a high probability and high impact. The Project Board has a low risk tolerance. What should the Project Manager do with this risk?
⚠ Common exam trap
The trap here is thinking that any high risk must be escalated to the Project Board.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Implement a risk response to reduce the threat
The Project Manager should implement an appropriate risk response to reduce the threat, given the high probability and impact and the low risk tolerance. This aligns with the risk management procedure, where risks are identified, assessed, and responded to. The Project Manager has the authority to manage risks within the project tolerances.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Implement a risk response to reduce the threat
Why this is correct
With a high probability and high impact risk and low risk tolerance, the Project Manager should implement a risk response, such as reducing the threat, to bring it within acceptable levels. This is part of the risk management procedure and the Project Manager's responsibility.
- ✗
Transfer the risk to the customer
Why it's wrong here
Transferring a risk to the customer is not a standard PRINCE2 response and may not be feasible. Transfer typically involves insurance or contractual arrangements with third parties. It does not eliminate the need to manage the risk and may not align with the low risk tolerance.
- ✗
Escalate the risk to the Project Board as an exception
Why it's wrong here
Escalating as an exception is not the standard action for a high risk. Risks are managed through the Risk Register and risk management approach. Escalation to the Project Board occurs when a risk exceeds the project tolerances or when the Project Manager lacks authority to manage it.
- ✗
Accept the risk and monitor it
Why it's wrong here
Accepting a high probability, high impact risk when the Project Board has low risk tolerance is inappropriate. Acceptance is suitable for low-impact risks or when no cost-effective response exists. Here, the low tolerance means proactive action is needed.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official PeopleCert exam blueprint
This PRINCE2F practice question is part of Courseiva's free PeopleCert certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PRINCE2F exam.