Study PRINCE2 Foundation v7 Risk Appetite and Control: key concepts, common traps, and exam decision cues.
The Risk practice explains how PRINCE2 deals with uncertainty in a controlled way. Foundation questions here often test whether you can distinguish a risk from an issue and whether the answer follows a structured response path instead of hand-waving.
A risk is an uncertain event that could affect objectives if it happens. That makes it different from an issue, which already exists. PRINCE2 also expects risk appetite and tolerance thinking to be clear enough that people know when escalation or response review is needed.
The risk procedure is commonly understood as a sequence:
flowchart LR
A["Identify risk"] --> B["Assess probability and impact"]
B --> C["Plan response"]
C --> D["Implement response"]
D --> E["Communicate and review"]
The Risk Register supports this control by recording threats, opportunities, owners, responses, and status. Foundation questions may ask which action fits the procedure, who should own a risk, or whether the scenario is still an uncertainty or already an issue.
| If the scenario says… | The stronger response usually… |
|---|---|
| something might happen later and could affect objectives | keeps it in risk logic, not issue logic |
| a problem has already happened | stops calling it only a risk |
| the answer jumps straight to action | checks ownership, probability, impact, and response thinking first |
| the uncertainty could help as well as harm | remembers that PRINCE2 risk includes opportunities too |
A supplier dependency may delay a product if a contract is not finalized in time. That is a risk while it is still uncertain. Once the missed contract date has already happened and is affecting work, it becomes an issue to manage.
A team learns that an external approval may arrive late and could delay a planned delivery, but the date has not yet been missed. The stronger Foundation answer does not treat this as a live issue just because it sounds serious. It keeps the matter in the risk path, records it properly, and expects review and response planning rather than informal worry.
A project team identifies a possible delay that may occur if a third-party approval is late. Which PRINCE2 register is the strongest place to record this first?
A. Lessons Log B. Risk Register C. Daily Log only D. Quality Register
Best answer: B
Why: The situation is still uncertain, so it should be controlled as a risk in the Risk Register.
Why the others are weaker: A captures learning, C is weaker as the main formal control record here, and D is for quality activity evidence.