PRINCE2 – Foundation Exam Exam

When is the Risk Management Strategy produced?

1. Before the initiation stage

2. After authorization has been given to proceed with the initiation stage

3. During the Starting Up a Project process

4. At the end of project execution

The correct answer is: After authorization has been given to proceed with the initiation stage

The Risk Management Strategy is produced after authorization has been given to proceed with the initiation stage. This strategy outlines how risk management will be conducted throughout the project. By the time the project moves into the initiation stage, it is crucial to have a clear plan in place to identify, assess, and manage risks effectively. This allows for the establishment of a framework that ensures proactive risk management practices are incorporated into the project from the beginning. During the Starting Up a Project process, the necessary groundwork is laid, but the comprehensive Risk Management Strategy is not finalized until the project is officially authorized to move into initiation. This timing ensures that all relevant stakeholders are aligned and that the strategy reflects their inputs and expectations. Overall, creating the Risk Management Strategy post-authorization supports the proactive management of risks and aligns with the project’s governance structure.