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 statements about the Risk practice are correct?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
A risk owner must be identified for each risk.
Option B is correct because 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.
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.
✗
The risk budget is used to fund the project's activities.
Why it's wrong here
The risk budget is used to fund risk responses, not general project activities.
✓
A risk owner must be identified for each risk.
Why this is correct
Each risk must have a risk owner who is responsible for managing the risk.
Related concept
Read the scenario before looking for a memorised answer.
✗
Only threats are considered as risks.
Why it's wrong here
Both threats and opportunities are risks in PRINCE2.
✗
The risk register is optional if the project is small.
Why it's wrong here
The risk register is a mandatory management product.
✓
The risk management approach defines how risks will be managed.
Why this is correct
The risk management approach is a required document that describes the procedures for risk management.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
PeopleCert often tests the misconception that the risk budget can be used for general project activities, but PRINCE2 strictly reserves it for funding risk responses, not operational tasks.
Detailed technical explanation
How to think about this question
The risk register is a formal document that records identified risks, their analysis, planned responses, and status. It is part of the PRINCE2 management products and must be created during the Initiating a Project process. The risk owner is assigned during the identify step and is distinct from the risk actionee, who executes specific response actions. This separation ensures accountability and traceability in risk management.
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.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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: A risk owner must be identified for each risk. — Option B is correct because 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.
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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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.
Question Discussion
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