PRINCE2 – Foundation Exam Exam

Which is one of the six aspects of project performance that needs to be managed?

1. Budget

2. Risk

3. Technology

4. Stakeholder approval

The correct answer is: Risk

The correct answer focuses on "Risk" as one of the six aspects of project performance that needs to be managed because effective project management involves identifying, assessing, and controlling risks that could potentially impact the project's outcomes. Managing risk ensures that potential threats to the project's success are mitigated, and opportunities are maximized. In the context of PRINCE2, risk management is a critical component that spans the entire project lifecycle. It requires ongoing attention and proactive strategies to handle uncertainties that could derail the project or lead to suboptimal performance. By addressing risks systematically, project managers can make informed decisions, ensuring that the project remains on track toward achieving its objectives while minimizing potential setbacks. The other aspects, while important, do not encompass the comprehensive scope of managing uncertainties as effectively as risk management does. For instance, "Budget" and "Stakeholder approval" represent specific elements within project performance, but they do not capture the broader dynamic of managing uncertainties inherent to any project. "Technology" can play a role in project execution but is not an aspect of project performance in the same way that risk is, which directly influences every facet of project management.