- A
To identify and manage risks proactively
This is a key purpose.
- B
To avoid all risks
Why wrong: It is not possible to avoid all risks.
- C
To ensure all risks are transferred to a third party
Why wrong: Transfer is only one possible response, not a purpose.
- D
To remove uncertainty from the project
Why wrong: Uncertainty cannot be fully removed.
- E
To support decision-making by understanding risk exposure
Risk management supports informed decision-making.
Question 1,698 of 1,731
PRINCE2F PRINCE2 Practices Practice Question
This PRINCE2F practice question tests your understanding of prince2 practices. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
Which TWO of the following are purposes of the Risk Management practice?
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
✓
To identify and manage risks proactively
Option A is correct because the Risk Management practice in PRINCE2 is designed to identify, assess, and control risks proactively throughout the project lifecycle. Option E is correct because understanding risk exposure directly supports informed decision-making by the project board and management team.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
To identify and manage risks proactively
Why this is correct
This is a key purpose.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
To avoid all risks
Why it's wrong here
It is not possible to avoid all risks.
- ✗
To ensure all risks are transferred to a third party
Why it's wrong here
Transfer is only one possible response, not a purpose.
- ✗
To remove uncertainty from the project
Why it's wrong here
Uncertainty cannot be fully removed.
- ✓
To support decision-making by understanding risk exposure
Why this is correct
Risk management supports informed decision-making.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse the purpose of risk management with extreme or absolute goals (like avoiding all risks or removing uncertainty), when PRINCE2 emphasizes balanced, proactive management of uncertainty to support decision-making.
Detailed technical explanation
How to think about this question
The Risk Management practice in PRINCE2 follows a five-step procedure: Identify, Assess, Plan, Implement, and Communicate. Risk exposure is quantified using probability and impact scales, enabling the project manager to prioritize risks and allocate appropriate responses (e.g., avoid, reduce, transfer, accept). In a real-world scenario, a project might use a risk budget to fund contingency actions for high-priority risks, ensuring proactive control rather than reactive firefighting.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A practitioner preparing for the PRINCE2F exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Got this wrong? Here's your next step.
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FAQ
Questions learners often ask
What does this PRINCE2F question test?
PRINCE2 Practices — This question tests PRINCE2 Practices — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: To identify and manage risks proactively — Option A is correct because the Risk Management practice in PRINCE2 is designed to identify, assess, and control risks proactively throughout the project lifecycle. Option E is correct because understanding risk exposure directly supports informed decision-making by the project board and management team.
What should I do if I get this PRINCE2F question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jul 4, 2026
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.
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