PRINCE2 PRINCE2 Foundation Exam Questions
PRINCE2 Foundation 7 Edition (Page 13 )

Updated On: 12-May-2026
PRINCE2 FOUNDATION
Answer(s): B
QUESTION: 55

What is the purpose of the risk budget?

A. To fund risk management activities defined in the risk management procedure
B. To fund the cost of analyzing requests for change while executing a Work Package
C. Funds set aside from the project budget to cover the costs of implementing risk responses
D. Funds set aside from the project budget to cover the costs of identifying risks to the project

Answer(s): C
QUESTION: 56

Which of the following are valid risk responses for threats?

A. Accept, Enhance, Transfer
B. Avoid, Enhance, Fal back
C. Avoid, Accept, Fal back
D. Exploit, Accept, Fal back

Answer(s): C
QUESTION: 57

Identify the missing word in the following sentence... A risk consists of a combination of the of a
perceived threat or opportunity occurring and the magnitude of its impact on objectives.

A. Outcome
B. Probability
C. Dis-benefit
D. Proximity

Answer(s): B
QUESTION: 58

What is the goal of the 'identify context' step as part of the risk management procedure?

A. Identify responses to risks identified in the Business Case
B. Gather information about the project environment and objectives
C. Gather information about risks for inclusion in Highlight Reports to the Project Board
D. Identify the threats and opportunities that may affect the project's objectives

Answer(s): B
QUESTION: 59

Which statement best describes the responsibilities of a risk actionee?

A. Identifying risks to the project that might occur in their department
B. Owning and authorizing the use of the risk budget to fund risk responses
C. Managing, monitoring and controlling of all aspects of an assigned risk
D. Carrying out a risk response action to respond to a particular risk
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