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PRINCE2F PRINCE2 Practices Practice Question

Exhibit

Refer to the exhibit.

Exhibit:
Risk Register:
  Risk ID: R1
  Risk Type: Threat
  Risk Description: Key supplier may go out of business
  Probability: Low
  Impact: High
  Risk Owner: Project Manager
  Proximity: Within next stage
  Risk Response: Mitigate - Identify alternative suppliers

Based on the exhibit, what is the current risk exposure of risk R1?

⚠ Common exam trap

Watch out — candidates often confuse the individual probability or impact rating with the combined risk exposure, mistakenly selecting 'High' or 'Very High' when only one factor is elevated, or 'Low' when both are medium, instead of correctly calculating the product.

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

Medium

Risk exposure is calculated as the product of probability and impact. In the exhibit, risk R1 has a probability of 'Medium' (0.3–0.7) and an impact of 'Medium' (0.3–0.7). Multiplying the midpoints (0.5 × 0.5 = 0.25) or using the ranges, the resulting exposure falls within the 'Medium' category on the PRINCE2 risk matrix. Therefore, the current risk exposure is correctly identified as Medium.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Low

    Why it's wrong here

    Low risk exposure would require either low probability and low impact, or a combination that yields a low product. Here, both probability and impact are medium, so the product is medium, not low.

  • Very High

    Why it's wrong here

    (Very High) is incorrect because neither probability nor impact is at the highest level. Very High exposure would require both probability and impact to be High or Very High.

  • Medium

    Why this is correct

    (Medium) is correct because the product of Medium probability (0.5) and Medium impact (0.5) is 0.25, which according to the PRINCE2 risk matrix corresponds to Medium exposure.

  • High

    Why it's wrong here

    (High) is incorrect because the product of two Medium ratings does not reach the threshold for High exposure. High would require at least one factor to be High or the product to be higher.

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JA

Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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.