PRINCE2 Foundation — Question 198

Which statement defines a risk?

Answer options

• A. A certain event occurring in the future that will have a negative impact on the project's objectives
• B. An event that has already occurred that the Project Manager must deal with immediately
• C. An uncertain event, or set of events that, should it or they occur, will have an effect on the achievement of objectives
• D. An uncertain event, or set of events that, should it or they occur, will be automatically escalated to the Project Board for a response

Correct answer: C

Explanation

Option C is correct because it accurately describes risk as an uncertain event that can impact objectives. Option A is incorrect as it defines a certain event, which is not a risk. Option B refers to an event that has already occurred, which is not a risk but rather an issue. Option D incorrectly states that such events will automatically escalate to the Project Board, which is not a standard definition of risk.