Learn about risk effect in PRINCE2 Foundation certification. Discover how it impacts project objectives and differs from risk cause, risk status, and risk description.
Table of Contents
Question
Which describes a risk effect?
A. The uncertainty expressed as a negative or favourable occurrence
B. The issue which is affecting the project and has resulted in a risk
C. The impact(s) on the project objectives should the threat or opportunity occur
D. The change in the status of a risk in response to actions taken to control it
Answer
C. The impact(s) on the project objectives should the threat or opportunity occur
Explanation
In PRINCE2, a risk effect refers to the potential consequences or impacts on the project’s objectives if a particular risk (either a threat or an opportunity) materializes. It describes how the project’s goals, such as scope, time, cost, and quality, could be affected by the occurrence of the risk event.
Risk effect is different from:
- Risk description (A), which expresses the uncertainty as a negative or positive occurrence
- Risk cause (B), which is the source or trigger of the risk
- Risk status (D), which represents the current state of a risk after implementing control measures
By understanding the risk effect, project managers can prioritize risks based on their potential impact and develop appropriate response strategies to minimize threats and maximize opportunities.
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.