Risk

Question 1

The definition of risk

Answer 1

An uncertain event or set of events that, should it occur, will affect the
achievement of objectives. A risk is measured by a combination of the
likelihood of a perceived threat or opportunity occurring, and the
magnitude of its impact on objectives.

Question 2

The purpose of the
risk practice

Answer 2

The purpose of the PRINCE2 risk
practice is to identify, assess, and control uncertainties and, as a
result, improve the ability of the project to succeed.

Question 3

Key risk concepts

Answer 3

> risk owner and risk
action owner
exposure
likelihood
impact
proximity
appetite
tolerance
budget
velocity
risk response
types

Question 4

Risk control

Answer 4

• risk response depends on the situation
  and type of risk
• may lead to residual or secondary risks
• risk owners and risk action owners should be clearly identified
• an explicit risk budget should be ring fenced within the project’s budget

Question 5

Risk culture

Answer 5

• The risk culture of the
  business should be
  reflected in its risk
  appetite.
• Decisions and risk
  management can be
  affected by decision
  bias.

Question 6

Risk culture

Answer 6

Optimism bias
Loss aversion
Groupthink
Proximity

Question 7

Responsibilities
- Project manager
- Project assurance
- Project executive
- Team manager

Answer 7

• Maintain the risk register. Ensure that project risks are being
  identified, assessed, and controlled throughout the project lifecycle.
• Review risk management practices to ensure that they are performed in line with the project’s risk management approach.
• Ensure that risk management approach is appropriate. Risks
  associated with the business case are identified, assessed, and
  controlled. Escalate risks as needed to programme manager or customer.
• Participate in the identification, assessment, and control of risks.

Question 8

Management products

Answer 8

1> Risk management
approach
How risk will be
managed on the
project
2> Risk register
Record of identified
risks (threats and
opportunities)
related to the
project

Question 9

Applying the principles