Which is a purpose of the Risk theme?
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A. B. C. D.B.
The correct answer is B. Establish a cost-effective procedure to identify, assess and control uncertainty.
The Risk theme is one of the seven themes in PRINCE2, which is a project management methodology widely used in both public and private sectors. The purpose of the Risk theme is to ensure that potential risks are identified, assessed, and controlled in a proactive and cost-effective way.
Risks are defined as uncertain events or conditions that could have a positive or negative impact on the project objectives. The Risk theme provides a structured approach to managing risks throughout the project lifecycle, from initiation to closure.
The purpose of the Risk theme can be broken down into three key elements:
Identify risks: The first step in managing risks is to identify them. This involves using various techniques to identify potential risks, such as brainstorming, checklists, and SWOT analysis. The Risk theme provides guidance on how to identify risks and how to categorize them based on their impact and probability.
Assess risks: Once risks have been identified, they need to be assessed to determine their potential impact on the project objectives. This involves estimating the likelihood and impact of each risk and prioritizing them based on their severity. The Risk theme provides guidance on how to assess risks and how to develop risk management strategies based on the results of the assessment.
Control risks: The final step in managing risks is to develop and implement risk response plans to control or mitigate the risks. This involves taking proactive measures to reduce the likelihood or impact of the risks, as well as developing contingency plans to deal with them if they occur. The Risk theme provides guidance on how to develop and implement risk response plans and how to monitor and review risks throughout the project lifecycle.
Option A, establishing a procedure to ensure every change is agreed by the relevant authority before it takes place, is related to the Change theme in PRINCE2. Option C, establishing mechanisms to control any unacceptable deviations from plan, is related to the Progress theme in PRINCE2. Option D, establishing mechanisms to manage risks at the corporate or programme level of an organization, is related to the Risk Management process in PRINCE2, but not specifically to the Risk theme.