A risk budget may fund the implementation of a fallback plan, which is activated if a risk materializes. This ensures that resources are available to manage and mitigate the impact of risks on the project, aligning with proactive risk management strategies in PRINCE2. References: PRINCE2 7 Foundation Handbook and official training materials.

A forecast is a prediction made by studying historical data and past patterns. In project management, forecasting involves using data from the project's progress and external benchmarks to predict future project performance, helping in planning and decision-making processes.References: (PRINCE2 7 Foundation Handbook, AXELOS)

Applying the 'focus on products' principle in PRINCE2 helps to ensure stakeholder expectations are met by providing a common understanding of the project's products. This principle emphasizes the importance of clearly defining what the project has to deliver, in terms of both scope and quality, so that there is no ambiguity about the expected deliverables, thereby aligning expectations and project outputs.References: = PRINCE2 7 Foundation handbook and online resources

The Project Manager should review the Highlight Report to report to the Project Board on the status of the project's issues. The Highlight Report provides a regular summary of the stage status, including progress against the plan and details about any issues or risks, making it the appropriate management product for communicating current issues to the Project Board.References: (PRINCE2 7 Foundation Handbook, AXELOS)

The objectives of the 'Starting up a Project' process in PRINCE2 include giving authority to initiate the project (ensuring there is a solid foundation before significant expenditure is committed), and appointing the resources needed to undertake the initiation phase of the project. This process sets the project up for success by confirming its scope, defining how it will be managed, and allocating the necessary resources.References:
= PRINCE2 7 Foundation Training Manual and official PRINCE2 website documentation