PRINCE2 PRINCE2-7-Foundation Practice Test - Questions Answers, Page 14

When deciding the duration of a management stage in PRINCE2, one key factor is the work packages to be delivered during the stage. The content and complexity of these work packages can significantly influence the length of the stage, as they define the scope and volume of work to be completed before the next stage review.

Reference: PRINCE2 Foundation Handbook, Tailoring and Adopting PRINCE2 section.

According to PRINCE2 principles, the business case theme requires documenting the management actions necessary to ensure benefits are realized. This involves planning, measuring, and managing the realization of benefits, and it's critical for maintaining the relevance and justification of the project.

Reference: PRINCE2 Foundation Handbook, Business Case Theme section.

In a programme environment, there might be multiple business cases within a single project, each supporting different parts of the programme's overall goals. This scenario is common when a project is designed to deliver outputs that contribute to several overlapping strategies or objectives within the programme.

Reference: PRINCE2 Foundation Handbook, Business Case Theme section.

The Benefits Management Approach in PRINCE2 is a document that describes how and when a measurement of the achievement of the project's benefits, both during and after the project, can be made. It is used to assess the performance of the project's products once they are in operational use, ensuring that the project delivers the intended benefits as outlined in the Business Case.

Reference: PRINCE2 7 Foundation Handbook and official training materials.

The 'Initiating a Project' process in PRINCE2 is crucial for establishing a solid foundation for the project. This process is used to ensure that there is a shared understanding of the reasons for undertaking the project, the way its objectives will be achieved, and the related commitments of time and resources before substantial resources are committed.

Reference: PRINCE2 7 Foundation Handbook and official training materials.

A risk budget is a specific amount of money set aside within the project budget to address potential threats and opportunities. This allocation is used to fund the specific management responses required to mitigate identified risks.

Reference: PRINCE2 Foundation Training Manual; PRINCE2 2017 Foundation handbook.

Risk response refers to the actions identified and implemented to bring the risk exposure to an acceptable level. These actions are part of the risk management process and aim to reduce, avoid, transfer, or accept risks depending on their potential impact on the project.

Reference: PRINCE2 Foundation Training Manual; PRINCE2 2017 Foundation handbook.

The risk effect in PRINCE2 describes the potential impact on project objectives if a specific threat or opportunity were to occur. This understanding is crucial in assessing the significance of the risk and determining the appropriate management response.

Reference: PRINCE2 Foundation Training Manual; PRINCE2 2017 Foundation handbook.

Risk probability in PRINCE2 refers to the measure of the likelihood that a particular risk will occur. It is a fundamental aspect of risk assessment, influencing the prioritization and management of risks within the project.

Reference: PRINCE2 Foundation Training Manual; PRINCE2 2017 Foundation handbook.