PRINCE2F Practice Exam 4 — 20 Questions

Question 1

Which risk response is appropriate for a threat that the project team decides to actively reduce the probability or impact of?

Accepted Answer

Reduce. In PRINCE2, 'Reduce' is the risk response that involves taking action to reduce the probability and/or impact of a threat. This is also known as mitigation. The question explicitly states the team decides to actively reduce probability or impact, which maps directly to the Reduce response.

Answer

Avoid

Answer

Accept

Answer

Transfer

Question 2

During which process does the Project Board authorize the project to proceed?

Accepted Answer

Directing a Project. Directing a Project. This process is where the Project Board makes key decisions and authorizes the project to proceed. Specifically, after the Initiating a Project process produces the Project Initiation Documentation, the Project Board reviews it and gives authorization to proceed with the project during the Directing a Project process. This formal authorization grants the Project Manager authority to start the first delivery stage.

Answer

Controlling a Stage

Answer

Starting Up a Project

Answer

Initiating a Project

Question 3

Which TWO are roles that are part of the Project Board?

Accepted Answer

Senior User. The Senior User (D) and the Executive (E) are two of the three mandatory roles on the PRINCE2 Project Board, alongside the Senior Supplier. The Executive is the Senior Responsible Owner (SRO) who owns the business case and has ultimate authority, while the Senior User represents the interests of those who will use the project's outputs. These roles are defined in the PRINCE2 'Organization' theme and are essential for project governance.

Answer

Project Manager

Answer

Project Assurance

Answer

Team Manager

Question 4

In the risk management procedure, which step includes evaluating risk probability and impact?

Accepted Answer

Assess. In PRINCE2's risk management procedure, the 'Assess' step is where each risk is evaluated for its probability and impact, and then its overall severity is determined. This step combines the earlier 'Identify' outputs with a structured assessment to prioritize risks for subsequent planning and implementation. The Assess step is explicitly defined in the PRINCE2 risk management procedure as the point where probability and impact are estimated.

Answer

Implement

Answer

Identify

Answer

Plan

Question 5

In PRINCE2, who is responsible for ensuring that project assurance is independent of the Project Manager?

Accepted Answer

Project Board. In PRINCE2, the Project Board is accountable for project assurance, ensuring it is independent of the Project Manager. The Board appoints assurance roles (Business, User, Supplier assurance) that monitor the project on its behalf, providing independent oversight. This independence is a core governance principle.

Answer

Senior User

Answer

Project Manager

Answer

Project Support

Question 6

Which PRINCE2 document provides the Project Board with a summary of the stage's progress, including achievements, issues, and forecasts, at regular intervals during a stage?

Accepted Answer

Highlight Report. The Highlight Report is the PRINCE2 progress document produced by the Project Manager and sent to the Project Board at regular, agreed intervals (typically weekly or monthly) throughout a stage. It summarises stage status, including achievements, issues, risks, and forecasts, giving the Board ongoing visibility without waiting for stage boundaries. This matches the question's description of a regular-interval summary during a stage.

Answer

Exception Report

Answer

End Stage Report

Answer

Checkpoint Report

Question 7

In PRINCE2, who is accountable for the project's success and the realization of benefits?

Accepted Answer

Senior Responsible Owner (SRO). In PRINCE2, the Senior Responsible Owner (SRO) is the single point of accountability for the project's success and the realization of benefits. This role is defined in the PRINCE2 framework as the individual who owns the business case and ensures the project delivers the expected outcomes that justify the investment.

Answer

Project Manager

Answer

Senior User

Answer

Senior Supplier

Question 8

What is the primary purpose of the Project Support role in PRINCE2?

Accepted Answer

To provide administrative support, such as maintaining files and tools. The Project Support role in PRINCE2 is specifically defined to provide administrative and clerical services to the project management team. This includes maintaining project files, tools, and configuration management records, ensuring that the project operates efficiently without burdening the project manager with routine tasks.

Answer

To provide independent assurance to the Project Board

Answer

To approve Work Packages

Answer

To manage the day-to-day activities of the project

Question 9

Who is responsible for producing the End Project Report?

Accepted Answer

Project Manager. The Project Manager produces the End Project Report as part of the Closing a Project process.

Answer

Team Manager

Answer

Senior User

Answer

Project Board

Question 10

What is the purpose of the Highlight Report?

Accepted Answer

To report stage progress to the Project Board. The Highlight Report is provided by the Project Manager to the Project Board at the end of each reporting period to summarize progress.

Answer

To report the end of a stage

Answer

To report team progress to the Project Manager

Answer

To report a forecast deviation

Question 11

A project is forecast to exceed its cost tolerance for the current stage. What should the Project Manager do?

Accepted Answer

Raise an Exception Report to the Project Board and await their direction before proceeding. In PRINCE2, when a stage is forecast to exceed its cost tolerance, the Project Manager must escalate the issue to the Project Board by raising an Exception Report. This is because the Project Manager does not have authority to exceed the agreed tolerance; the Project Board must decide whether to approve a revised plan or take other corrective action. Option D correctly follows the PRINCE2 exception management process.

Answer

Increase the project budget to absorb the additional cost and continue with the current Stage Plan

Answer

Continue with the current Stage Plan and report the cost overrun in the next Highlight Report

Answer

Close the project immediately as the Business Case is no longer viable

Question 12

Which role is responsible for providing assurance that the project is being conducted properly?

Accepted Answer

Project Assurance. Project Assurance is responsible for independent oversight of the project, separate from management and delivery.

Answer

Project Manager

Answer

Project Support

Answer

Senior User

Question 13

In the Risk practice, who is responsible for implementing a risk response?

Accepted Answer

Risk actionee. In PRINCE2, the risk actionee is the person responsible for implementing the risk response actions as defined in the risk response plan. The risk owner owns the risk and oversees the response, but the actual implementation is delegated to the risk actionee. This separation ensures clear accountability for execution versus ownership.

Answer

Project Manager

Answer

Project Board

Answer

Risk owner

Question 14

Which process ensures that the project's products are delivered according to the agreed quality criteria?

Accepted Answer

Managing Product Delivery. Managing Product Delivery is the PRINCE2 process that focuses on the work required to create the project's products and ensures they are delivered according to the agreed quality criteria. It is the process where the team manager accepts work packages, executes the work, and delivers completed products that meet the defined quality standards.

Answer

Initiating a Project

Answer

Controlling a Stage

Answer

Directing a Project

Question 15

Which PRINCE2 principle is being applied when the Project Manager escalates an issue that is outside the stage tolerance?

Accepted Answer

Manage by exception. The principle of 'Manage by exception' is applied when the Project Manager escalates an issue that exceeds the stage tolerance. This principle establishes that each management level (e.g., Project Manager, Project Board) has defined tolerances (e.g., time, cost, quality) for their delegated authority; if a forecast or actual deviation goes beyond those tolerances, the issue must be escalated to the next management level for a decision. By escalating the out-of-tolerance issue, the Project Manager is following the exception-based control mechanism that is core to PRINCE2.

Answer

Manage by stages

Answer

Tailor to suit the project environment

Answer

Continued business justification

Question 16

Which process covers the day-to-day management of a stage by the Project Manager?

Accepted Answer

Controlling a Stage. The 'Controlling a Stage' process is the day-to-day management of a stage by the Project Manager. It involves authorizing work packages, monitoring progress, dealing with issues, and reporting to the Project Board. This process ensures the stage stays on track and within tolerances.

Answer

Managing a Stage Boundary

Answer

Directing a Project

Answer

Managing Product Delivery

Question 17

You are the project manager for a software development project. The business case shows a net present value (NPV) of $200,000 with a payback period of 18 months. During the initiating stage, the senior supplier informs you that the cost of a key component has increased by 20%, which will reduce the NPV to $50,000 and extend the payback period to 24 months. The project board is not scheduled to meet for another month. What should you do?

Accepted Answer

Request an extraordinary meeting of the project board to discuss the revised business case. PRINCE2 requires that any change to the business case, especially one that significantly reduces NPV and extends payback period, must be escalated to the project board for a decision. As project manager, you cannot unilaterally update the business case or change scope; you must request an extraordinary meeting to present the revised business case and seek approval to continue. This aligns with the 'continued business justification' principle and the 'manage by stages' theme.

Answer

Update the business case with the new figures and continue with the project

Answer

Reduce project scope to bring costs back in line with the original business case

Answer

Wait for the next scheduled board meeting to present the changes

Question 18

During a project, a team manager reports that a work package is taking longer than expected. The project manager needs to assess the impact on the project schedule. Which practice should be used to evaluate the effect and determine whether to escalate?

Accepted Answer

Progress. The Progress practice is used to monitor and compare actual achievements against planned performance, and to assess the impact of deviations. When a work package takes longer than expected, the project manager uses Progress to evaluate the effect on the schedule and decide whether to escalate to the project board. This aligns with PRINCE2's principle of managing by stages and using tolerances to control deviations.

Answer

Risk

Answer

Plans

Answer

Organizing

Question 19

Which process is used by the Project Board to oversee the entire project?

Accepted Answer

Directing a Project. The 'Directing a Project' process is the correct answer because it is the PRINCE2 process that covers the Project Board's responsibilities for overseeing the entire project from start to finish. It provides the strategic direction, authorizes key decisions (such as stage boundaries and project closure), and ensures the project remains viable and aligned with business objectives. This process runs from the initial authorization to the final project closure, making it the overarching governance mechanism.

Answer

Controlling a Stage

Answer

Managing Product Delivery

Answer

Starting Up a Project

Question 20

A project is experiencing many changes due to evolving requirements. Which document should the Project Manager use to track all requests for change?

Accepted Answer

Issue Register. The Issue Register is the PRINCE2 document specifically designed to capture, track, and manage all requests for change, including off-specifications, problems, and concerns. Since the project is experiencing many changes due to evolving requirements, the Project Manager must log each change request in the Issue Register to ensure proper impact analysis, decision-making, and audit trail. This aligns with the PRINCE2 practice of managing issues and changes through a controlled process.

Answer

Risk Register

Answer

Configuration Item Record

Answer

Quality Register