Definitions

Question 1

a temporary organisation that is created for the purpose of delivering one or more business products according to an agreed business case

Answer 1

Project

Question 2

a temporary, flexible organisation structure created to coordinate, direct, and oversee the implementation of a set of related projects and activities in order to deliver outcomes and benefits related to the organisation’s strategic objectives. Likely to have a life that spans several years

Answer 2

Programme

Question 3

the totality of an organisation’s investment (or segment thereof) in the changes required to achieve its strategic objectives.

Answer 3

Portfolio

Question 4

the section of a project that the PM is managing on behalf of the project board at any one time, at the end of which the project board will wish to review progress to date, the state of the project plan, the business case and risks, and the next plan, in order to decide whether to continue with the project.

Answer 4

Management Stage

Question 5

an input or output, whether tangible or intangible, that can be described in advance, created, and tested.

Answer 5

Product

Question 6

adapting a method or process to suit the situation in which it will be used.

Answer 6

Tailoring

Question 7

the act of making something an integral part of a bigger whole. What an organisation needs to do to adopt PRINCE2 as its corporate project management method and encourage its widespread use.

Answer 7

Embedding

Question 8

any individual, group, or organisation that can affect, be affected by, or perceive itself to be affected by, an initiative (i.e. a programme, project, activity, or risk)

Answer 8

Stakeholder

Question 9

the degree to which a set of inherent characteristics of a product, service, process, person, organisation, system, or resource fulfils requirements

Answer 9

Quality

Question 10

the coordinated activities to direct and control an organisation with regard to quality.

Answer 10

Quality management

Question 11

a statement about the quality expected from the project product, captured in the project product description

Answer 11

Customer’s quality expectations

Question 12

a prioritised list of criteria that the project product must meet before the customer will accept it (i.e. measurable definitions of the attributes required for the set of products to be acceptable to key stakeholders)

Answer 12

Acceptance criteria

Question 13

a description of the quality specification that the product must meet, and the quality measurements that will be applied by those inspecting the finished product

Answer 13

Quality criteria

Question 14

a detailed proposal for doing or achieving something which specifies the what, when, how, and by whom it will be achieved.

Answer 14

Plan

Question 15

a high-level plan showing the major products of the project, when they will be delivered, and at what cost. It is a major control document for the project board to measure actual progress against expectations.

Answer 15

Project plan

Question 16

a detailed plan used as the basis for project management control throughout a management stage

Answer 16

Stage plan

Question 17

a plan that often follows an exception report

Answer 17

Exception plan

Question 18

the set of information relevant to the creation of one or more products. It will contain a description of the work, the product description(s), details of any constraints on production, and confirmation of the agreement between the PM and the person or team manager that the work can be done within the constraints

Answer 18

Work package

Question 19

an optional level of plan used as the basis for team management control when expecting work packages

Answer 19

Team plan

Question 20

one activity is dependent on another. Can be internal or external.

Answer 20

Dependency

Question 21

an uncertain event or set of events that, should it occur, will have an effect on the achievement of objectives.

Answer 21

Risk

Question 22

the systematic application of principles, approaches, and processes to the tasks of identifying and assessing risks, planning and implementing risk responses, and communicating risk management activities with stakeholders.

Answer 22

Risk management

Question 23

the extent of risk borne by the organisation at the time.

Answer 23

Risk exposure

Question 24

an organisation’s unique attitude towards risk-taking that in turn dictates the amount of risk that it considers acceptable.

Answer 24

Risk appetite

Question 25

the threshold levels of risk exposure that, with appropriate approvals, can be exceeded, but which when exceeded will trigger some form of response (e.g. reporting the situation to senior management for action).

Answer 25

Risk tolerance

Question 26

reference levels against which an entity is monitored and controlled.

Answer 26

Baseline

Question 27

a record that describes the status, version, and variant of an item, and any details of important relationships between them

Answer 27

Configuration item record

Question 28

a report on the status of products. The required products can be specified by identifier or the part of the project in which they were developed.

Answer 28

Product status account

Question 29

PRINCE2 has two types of products:

Answer 29

management products and specialist products.

Question 30

In PRINCE2 there are only the following types of plan:

Answer 30

project plan, stage plan, and exception plan

Question 31

one between two project activities - in these circumstances, the project team has control

Answer 31

Internal dependency

Question 32

one between a project activity and a non-project activity, where non-project activities are undertaken by people who are not part of the project team - in these circumstances, the project team does not have complete control

Answer 32

External dependency

Question 33

Risk measured by a combination of:

Answer 33

the probability of a perceived threat or opportunity occurring, and the magnitude of its impact on objectives.