Prince2-Foundation Questions Bank

An organization's unique attitude towards risk-taking is described as its 'Risk appetite'. Risk appetite defines the level and type of risk that an organization is willing to pursue or retain. This concept is critical in guiding how risks are managed across projects, as it influences decision-making and strategy regarding risk exposure.References: PRINCE2® 7 Foundation study guide and official documents.

The Project Brief is created during the Starting up a Project process. It defines and confirms the scope of the project, providing a foundation for the Initiation Stage and ensuring that all project stakeholders have a clear understanding of the project's objectives and scope. References: PRINCE2® Foundation Training Manual; PRINCE2® 2017 Foundation handbook.

The purpose of a Project Brief in PRINCE2® is to provide a solid basis for the initiation of the project. The Project Brief includes the outline of the project's objectives, scope, constraints, and assumptions. It is developed during the 'Starting up a Project' process and is used to ensure that a clear, concise, and feasible plan is proposed before the project is formally initiated.References: PRINCE2® 7 Foundation resources and materials.

The level of management that sets the project level tolerances in PRINCE2® is corporate, programme management, or the customer. These project-level tolerances are defined to set the allowable limits of variation for the project’s objectives, which the Project Manager must work within. This helps ensure that the project remains aligned with strategic goals and customer or corporate standards.References: PRINCE2® 7 Foundation resources and materials.