Re-Registration Exam: Prince2 - Missing Word Identification

Prince2 Re-Registration Exam

Question

Identify the missing word in the following sentence.

The purpose of the [?] theme is to identify, assess and control uncertainty.

Answers

Explanations

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A. B. C. D.

D.

The missing word in the sentence is "Risk."

The sentence is referring to a theme whose purpose is to identify, assess, and control uncertainty. This theme is related to an important concept in many fields, including project management, finance, and insurance, among others: risk.

Risk can be defined as the possibility of an event occurring that will have an impact on the achievement of objectives. In other words, risk is the uncertainty that surrounds future outcomes. It can be positive (opportunity) or negative (threat), and it can affect different aspects of a project, process, or business, such as scope, cost, schedule, quality, safety, reputation, etc.

The theme mentioned in the sentence is focused on managing risk. This involves several activities, such as:

  • Identification: recognizing potential risks and their causes, sources, and impacts. This can be done through brainstorming, historical data analysis, stakeholder consultation, etc.

  • Assessment: analyzing the likelihood and severity of each risk, based on qualitative or quantitative methods. This can involve using risk matrices, probability distributions, decision trees, Monte Carlo simulations, etc.

  • Control: developing and implementing strategies to mitigate, transfer, accept, or avoid risks, depending on their priority, feasibility, and cost-effectiveness. This can involve using risk registers, action plans, contingency plans, insurance policies, etc.

By having a structured and systematic approach to risk management, organizations can improve their chances of success, reduce their exposure to negative events, and enhance their ability to seize opportunities. Therefore, the concept of risk is essential for understanding and improving many aspects of modern life.