Learn about risk appetite, a key concept in PRINCE2 project management. Discover how an organization’s unique attitude towards risk-taking impacts project decisions and outcomes.
Table of Contents
Question
What is described as an organization’s unique attitude towards risk taking
A. Risk appetite
B. Risk management
C. Risk evaluation
D. Risk tolerance
Answer
A. Risk appetite
Explanation
Risk appetite refers to an organization’s unique attitude towards risk-taking. It is the level of risk that an organization is willing to accept in pursuit of its objectives. Risk appetite varies among organizations based on factors such as industry, culture, and strategic goals. Understanding risk appetite is crucial for effective risk management in PRINCE2 projects, as it guides decision-making and resource allocation. By aligning project risks with the organization’s risk appetite, project managers can ensure that risks are managed appropriately and project outcomes are optimized.
PRINCE2 Foundation certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the PRINCE2 Foundation exam and earn PRINCE2 Foundation certification.