PRINCE2-PRACTITIONER practice question 2 of 35

Scenario A photographer from Portraits Ltd, a professional photographic company, has taken on the role of Team Manager after taking some time to…

Domain Apply and tailor the PRINCE2 processes in context

Scenario A photographer from Portraits Ltd, a professional photographic company, has taken on the role of Team Manager after taking some time to understand the requirements of the project. A contract for their services has been set up and is being monitored by the Purchasing Manager and a Work Package has been agreed. This contract specifies that the photographer must arrange a meeting with the Engineering Manager to establish a schedule for the photo sessions to minimize the impact on the Engineering staff. This meeting should have occurred by now. The Engineering Manager was made aware of this requirement but when asked he reported that he has received no communication from the photographer. The Project Manager has tried to call the photographer and has had no response. The Project Manager believes there is a risk that Portraits Ltd are overbooking work and prioritizing other clients' work. If Portraits ltd do not deliver on schedule the project will be delayed and the expected benefits will be reduced. The contract is to be reviewed and Portraits Ltd reminded of their agreement. The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar, thereby reducing the anticipated benefits of the Calendar project. Which 2 statements should be recorded under the Timing of risk management activities heading?

Answer options

A: During stage 4, the selected service provider will manage any risks to their Business Case and report these to the Project Manager on a weekly basis.

B: The Project Board should hold monthly meetings to review project progress.

C: When closing a project, the follow-on action recommendations should be updated with any risks relating to the realization of benefits after the outsourced services go live. Correct answer

D: Any new risks identified during product development should be reported to the Project Manager by the Team Manager when delivering the completed Work Package.

E: When authorizing a stage, the Project Board will check that the exposure to risk is still acceptable. Correct answer

Correct Answer:

C. When closing a project, the follow-on action recommendations should be updated with any risks relating to the realization of benefits after the outsourced services go live.; E. When authorizing a stage, the Project Board will check that the exposure to risk is still acceptable.

Explanation

The question asks for statements that should be recorded under the "Timing of risk management activities" heading within the Risk Management Approach document. This section specifies when formal risk management activities will occur throughout the project lifecycle.
Option E is correct because checking risk exposure when authorizing a stage is a mandatory, timed activity for the Project Board within the 'Managing a Stage Boundary' process. It ensures the project's ongoing viability.
Option C is correct as it describes a crucial risk management activity performed at a specific time: "When closing a project". This ensures that risks related to the post-project realization of benefits are identified and passed on for future action, which is a key part of the 'Closing a Project' process.

Why Incorrect

A. This is an overly specific operational detail for one supplier in one stage, not a general procedural statement for the project's overall Risk Management Approach.
B. The frequency of Project Board meetings is a project control defined in the Communication Management Approach, not a specific risk management timing activity.
D. This describes poor practice. Risks must be escalated as soon as they are identified, not delayed until the completion of a Work Package.

References

1. AXELOS. (2017). Managing Successful Projects with PRINCE2® 2017 Edition. The Stationery Office Ltd.

Page 353

Appendix A

Section A.23.2 (Risk Management Approach): This section lists the required contents for the Risk Management Approach. Under the heading "Timing of risk management activities

" it states this section should define "when formal risk management activities are to be undertaken (e.g. at the end of stages)". Options C (at project closure) and E (at stage authorization) are perfect examples of such formal

timed activities.

Page 289

Section 23.4.3 (Activity: Prepare for the stage boundary): This section confirms that the Project Manager must "review and

if necessary

update the Risk Register" in preparation for the end stage assessment

directly supporting option E.

Page 299

Section 24.4.4 (Activity: Evaluate the project): As part of closing a project

the Project Manager must "ensure that any follow-on action recommendations related to unfinished work

ongoing issues and risks... are included

" which directly supports option C.

2. The Open University. (n.d.). M815: Project Management. Courseware.

In its discussion of PRINCE2 processes

the courseware emphasizes that risk is formally reviewed at key control points

particularly at the end of each management stage before the Project Board authorizes continuation. This aligns with option E. It also highlights that project closure involves ensuring a clear handover of any outstanding risks that may affect benefits after the project

aligning with option C.

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