PRINCE2F Project Initiation and Stages Practice Question
During the Initiation Stage, the project manager is reviewing the project's risk appetite with the project board. The board indicates that they are willing to accept only low risks. Which PRINCE2 principle is being applied when the project manager tailors the risk management approach to reflect this low risk tolerance?
⚠ Common exam trap
The trap here is thinking that managing risk appetite relates to continued business justification, but it is actually about tailoring the method to the project's specific risk profile.
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
✓
Tailor to suit the project environment
The tailoring principle requires that PRINCE2 is adapted to the project's environment, including its risk appetite. By adjusting the risk management approach to reflect the board's low risk tolerance, the project manager is tailoring the method to suit the project. This ensures that the project's risk management is proportionate and effective.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Tailor to suit the project environment
Why this is correct
The principle 'Tailor to suit the project environment' means that PRINCE2 should be adapted to the project's size, complexity, risk, and other factors. By adjusting the risk management approach to reflect the board's low risk tolerance, the project manager is tailoring the method to the project's specific risk profile, ensuring it is appropriate and effective.
- ✗
Learn from experience
Why it's wrong here
Learn from experience involves using lessons from previous projects to improve the current one. While risk management may benefit from lessons, the scenario describes tailoring the approach to the board's risk tolerance, which is a direct application of the tailoring principle, not learning from experience.
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Continued business justification
Why it's wrong here
Continued business justification ensures the project remains viable, but it does not involve tailoring the risk management approach. The scenario is about adapting the method to the board's risk appetite, which is an example of tailoring, not of maintaining business justification.
- ✗
Manage by stages
Why it's wrong here
Manage by stages involves dividing the project into manageable stages, with decisions at stage boundaries. It does not directly address tailoring the risk management approach to risk appetite. The principle being applied is tailoring, as it involves adapting the method to the project's risk tolerance.
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Last reviewed September 2026 · checked against the official PeopleCert exam blueprint
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