Practices - Risk

What is the Risk theme about?

• AEliminating all uncertainty
• BIdentifying, analyzing, and responding to uncertainties✓
• CPreventing all problems
• DRisk management planning only

Answer: Risk management involves systematic identification and management of uncertainties.

What is a Risk in PRINCE2?

• AA problem that has occurred
• BAn uncertain event that could affect objectives✓
• CA danger to the team
• DA financial loss

Answer: A risk is an uncertain event that, if it occurs, would impact project objectives.

What is Risk Identification?

• AKnowing which risks are real
• BSystematically finding potential risks✓
• CAssigning risks to people
• DCreating risk documents

Answer: Risk Identification is the systematic process of finding potential uncertainties.

How should risks be identified?

• AOnly by the Project Manager
• BThrough brainstorming with the team and stakeholders✓
• CBy reading risk lists
• DIndependently

Answer: Risk identification should be collaborative involving those with knowledge.

What is Risk Analysis?

• AWriting about risks
• BAssessing probability and impact of identified risks✓
• CSolving problems
• DListing risks

Answer: Risk Analysis evaluates the likelihood and consequences of risks.

What are the typical risk response strategies in PRINCE2?

• AOnly avoid and reduce
• BAvoid, reduce, transfer, accept, share, exploit✓
• CHope nothing happens
• DIgnore and manage them later

Answer: PRINCE2 identifies six main response strategies for different risk situations.

What does 'Avoid' mean as a risk response?

• AHope it doesn't happen
• BChange the project to eliminate the risk source✓
• CAccept it will happen
• DTransfer it to someone else

Answer: Avoid means changing the project approach to eliminate the risk.

What does 'Reduce' mean as a risk response?

• AIgnore the risk
• BCut the project scope
• CTake actions to decrease probability or impact✓
• DEliminate the risk completely

Answer: Reduce means implementing controls to make the risk less likely or less severe.

What does 'Transfer' mean as a risk response?

• AMove it to another department
• BPass the risk responsibility to a third party (e.g., insurance)✓
• CIgnore it
• DMake it someone else's problem

Answer: Transfer means shifting risk ownership to someone who is better able to manage it.

What does 'Accept' mean as a risk response?

• APretend the risk doesn't exist
• BAcknowledge the risk and accept the consequences if it occurs✓
• CHire more people
• DIncrease the budget

Answer: Accept means deciding to tolerate the risk if it happens without preventive action.

What is the Risk Register?

• AA list of team members
• BA document recording all identified risks and responses✓
• CA budget document
• DA schedule

Answer: The Risk Register documents all risks, their analysis, and planned responses.

Who should update the Risk Register?

• AOnly the Project Manager
• BThe Project Manager with team input regularly✓
• CAnnually
• DNever

Answer: The Risk Register should be maintained as a living document throughout the project.