How should a risk budget be applied?
How should a risk budget be applied?
A risk budget is used to cover the costs of implementing any contingent plans. This budget is specifically allocated to manage responses to both threats and opportunities that may arise during a project, ensuring that there is funding available to address these risks if they materialize.
B is correct - reference prince2 guide 10.3.7 Risk budget This is a sum of money to fund specific management responses to the project's threats and opportunities (e.g. to cover the costs of any contingent plans should a risk materialize).