PRINCE2 PRINCE2-7-Foundation Practice Test - Questions Answers, Page 46

The project manager needs to ensure that operational teams are responsible for running the project outputs during the step 'Transition the project into the organizational ecosystem'. This step involves integrating the project outcomes into the regular functions of the organization, ensuring that operational teams are prepared and accountable for maintaining and managing the project's outputs post-project completion.

Reference: (PRINCE2 7 Foundation Handbook, AXELOS)

Change management' is defined as the means by which an organization transitions to a desired future state. It involves the processes and techniques used to manage the people side of change to achieve the required business outcome, ensuring that changes are implemented smoothly and effectively.

Reference: PRINCE2 7 Foundation materials on project management terms and definitions.

The project manager should record the impact assessment for a specific business opportunity in an 'Issue Report'. This management product is used to detail particular issues that might affect the project, including opportunities (which are treated like positive risks), and provides a basis for decision-making regarding these issues.

Reference: PRINCE2 7 Foundation materials on issue management and related documentation.

The definition of management within the context of PRINCE2 relates to instructing the execution of tasks according to predefined, agreed-upon methods or standards. This encapsulates the directive aspects of management, ensuring tasks are completed as planned and in alignment with the project's goals and processes.

Reference: PRINCE2 7 Foundation handbook and guide on management principles.

One of the best reasons for a PRINCE2 project to have at least two stages is that it provides structured decision points. At the end of each stage, the project board reviews progress and decides whether to proceed with the next stage, ensuring that the project remains viable and aligns with business objectives before committing further resources.

Reference: PRINCE2 7 Foundation resources on stage management.

The primary reason to perform the risk practice within a PRINCE2 project is to identify and manage risks that could affect the project's objectives. Effective risk management ensures that potential threats and opportunities are adequately assessed and handled to minimize negative impacts and leverage positives, thereby safeguarding the project's success.

Reference: PRINCE2 7 Foundation materials on risk management practices.

The 'progress' practice in PRINCE2 should be used to monitor and control the performance of the project against its plans and the project's overall direction. This includes predicting whether the benefits will exceed the costs, which is crucial for evaluating the project's ongoing viability and justifying the continuation of the project based on its forecasted value to the organization.

Reference: (PRINCE2 7 Foundation Handbook, AXELOS)

Qualitative analysis of a risk in PRINCE2 assesses, at a minimum, the likelihood of each risk occurring and its potential impact on project objectives. This analysis helps in prioritizing risks based on their severity and likelihood, which is crucial for effective risk management and decision-making about risk responses.

Reference: (PRINCE2 7 Foundation Handbook, AXELOS)

Risk tolerance is defined as the measurable threshold that represents the tolerable range of outcomes for each objective at risk. It quantifies the level of exposure to risk that an organization or project can withstand, helping to guide risk response planning and risk management strategies.

Reference: (PRINCE2 7 Foundation Handbook, AXELOS)