PRINCE2 Foundation — Question 201

Identify the missing words in the following sentence. A risk budget is a sum of money included in the [ ? ] and set aside to fund specific management responses to a project's threats and opportunities.

Answer options

• A. change budget
• B. project budget
• C. project's cost tolerance
• D. project's risk tolerance

Correct answer: B

Explanation

The correct answer is B, as a risk budget is indeed derived from the project budget, which encompasses all financial resources allocated for the project. The other options, while related to project management, do not accurately represent where the risk budget is sourced from.