Project Risk Budget Allocation | Prince2 Foundation Exam Guide

Record the Agreed Amount of Risk Budget for a Project

Question

Which document should record the agreed amount of risk budget for a project?

Answers

Explanations

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A. B. C. D.

B.

The document that records the agreed amount of risk budget for a project is the Risk Management Strategy (C). A risk management strategy is a document that outlines how risks will be identified, assessed, and managed throughout the project's life cycle. It provides a framework for risk management activities and assigns responsibilities for each risk management task.

The risk management strategy should include a section on risk budgeting, which defines the amount of money or resources set aside to address identified risks. The risk budget is typically expressed as a percentage of the overall project budget or as a specific dollar amount. The budget is agreed upon during project planning and is updated as necessary throughout the project.

The project brief (A) is a high-level document that outlines the project's objectives, scope, and requirements. It provides a summary of the project's purpose and key features and is typically used to secure approval and funding for the project.

The project plan (B) is a detailed document that outlines how the project will be executed, monitored, and controlled. It includes a schedule, budget, resource allocation, and other details necessary to manage the project.

The risk register (D) is a document that lists all identified risks and their characteristics, such as their probability of occurring and potential impact on the project. It is used to track the status of risks and monitor progress in mitigating or avoiding them.

Therefore, the correct answer is (C) Risk Management Strategy.