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PRINCE2F PRINCE2 Practices Practice Question

Which TWO of the following are purposes of the Risk Management practice?

⚠ Common exam trap

A common mix-up: candidates 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.

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

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.

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.

  • 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.

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