PRINCE2F PRINCE2 Practices Practice Question
Which TWO statements about the Risk practice are correct?
⚠ Common exam trap
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.
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
✓
A risk owner must be identified for each risk.
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.
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.
- ✗
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.
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