PRINCE2F PRINCE2 Practices Practice Question
Which THREE statements about the PRINCE2 Risk practice are correct?
⚠ Common exam trap
Test-takers frequently confuse the role of a risk owner with budget authority, leading candidates to incorrectly select Option D, and assuming risk assessment is a one-time event rather than a continuous activity, which makes Option E seem plausible.
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
✓
The risk register is a management product that records identified risks.
The risk register is a PRINCE2 management product that formally records all identified risks, their status, and related information throughout the project. It is created during the Initiating a Project process and maintained as risks are identified, assessed, and responded to.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
The risk register is a management product that records identified risks.
Why this is correct
The risk register documents all identified risks and their management.
- ✓
The risk management strategy describes how risks will be managed.
Why this is correct
The risk management strategy defines the procedures and approach for risk management.
- ✓
The risk budget is used to fund risk responses.
Why this is correct
The risk budget is a sum of money set aside to fund risk responses.
- ✗
Risk owners are responsible for the risk budget.
Why it's wrong here
Risk owners manage the risk, but the risk budget is controlled by the project manager.
- ✗
Risks are assessed only during the initiating a project process.
Why it's wrong here
Risks are assessed throughout the project, not only during initiation.
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Same concept, more angles
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Variation 1. Which TWO statements about the Risk practice are correct?
medium- A.The risk budget is used to fund the project's activities.
- ✓ B.A risk owner must be identified for each risk.
- C.Only threats are considered as risks.
- D.The risk register is optional if the project is small.
- ✓ E.The risk management approach defines how risks will be managed.
Why B: PRINCE2 requires that each risk has a named risk owner who is accountable for managing that risk and implementing the planned responses. This ensures clear accountability and proactive risk management throughout the project lifecycle.
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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