The level of management that sets the project level tolerances in PRINCE2 is corporate, programme management, or the customer. These project-level tolerances are defined to set the allowable limits of variation for the project's objectives, which the Project Manager must work within. This helps ensure that the project remains aligned with strategic goals and customer or corporate standards.References: PRINCE2 7 Foundation resources and materials.

To know whether the response to a threat has been actioned, the project manager should review the Risk Register. The Risk Register contains details about each identified risk, including the planned responses and their current status. It provides a comprehensive overview of how risks are being managed and whether the responses have been implemented as planned.References: (PRINCE2 7 Foundation Handbook, AXELOS)

A risk budget should be used to implement contingency plans (2) and actions to avoid a risk from occurring (3). This budget is set aside to fund specific actions that are part of the project's risk management strategy, enabling proactive and reactive responses to identified risks, ensuring the project remains on track despite uncertainties.References: = PRINCE2 7 Foundation handbook and online resources

An effective project team in PRINCE2 should be diverse, consisting of individuals with a variety of skills, abilities, and viewpoints. This diversity helps to ensure that the team can handle various aspects of the project effectively, bringing different perspectives to problem-solving and decision-making, which enhances the overall capability of the project team.References: (PRINCE2 7 Foundation Handbook, AXELOS)

Part of quality control within PRINCE2 involves undertaking quality reviews. These reviews are essential for ensuring that the project's outputs meet the required quality standards and are fit for purpose, aligning with the defined quality criteria set out in the product descriptions. References: PRINCE2 Foundation Training Manual; PRINCE2 2017 Foundation handbook.