Exam PRINCE2-Foundation topic 1 question 122 discussion

I go for B - in the main Project plan. PRINCE2 recommends the following are included in the budget for a plan: 1.money to fund the activities to create specialist products (and management activities) 2.money to fund responses to risks (risk budget) 3. money to fund authorized changes to baseline products (change budget) 4. cost tolerance

Correct answer: B – Project Plan According to PRINCE2, the risk budget is part of the overall project budget and should be recorded in the Project Plan. The Risk Management Strategy (also known as the Risk Management Approach) defines how risks will be managed, and may mention that a risk budget will be used, but it does not include the actual amount. PRINCE2 Manual – Section 10.3.7: “The risk budget is part of the project budget and should therefore be included in the appropriate plan (e.g. project plan, stage plan)…” So while the Risk Management Strategy outlines the control mechanisms, the Project Plan contains the actual risk budget figure.

The Risk Management Plan should record the agreed amount of risk budget for a project. This document outlines how risks will be identified, assessed, managed, and monitored throughout the project lifecycle.

The Risk Management Strategy document outlines how risks will be managed throughout the project, and it often includes the agreed-upon risk budget—this is the allocated amount of funds or resources set aside to address potential risks.

• Risk Management Strategy will detail if a risk budget is to be used, what it will be used for, and defines mechanisms for control of and access to this budget • Amounts are documented in the relevant plan

Given it is part of project budget, it will be in Project Budget, which will be added to project plan. hence B

B As the risk budget is part of the project budget

The correct answer is C

C is good

page 125 ;10.3.7 Establishing a risk budget => As the risk budget is part of the project budget, there may be a tendency to treat it as just another sum of money that the project manager can spend .

c is correct

C seems corrext

C is correct

A Risk Budget is a sum of money that is put aside just to deal with specific responses to threats or opportunities and it cannot be used for anything else. Risk Budget is often referred to as a contingency budget and defined in the Rish Management Approach document. So the correct answer should be C!

Risk budget is reserved in Risk Management Strategy and so it should be C

Shouldn't it be C? A risk management approach describes how risk will be managed on the project. This includes the specific processes, procedures, techniques, standards and responsibilities to be applied.