PRINCE2-PRACTITIONER Practice Test 12 — 15 Questions

Question 1

During a PRINCE2 project stage, the Project Manager forecasts that the stage cost will exceed the upper cost tolerance by 5%. According to the Progress practice, what is the mandatory action the Project Manager must take?

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

Raise an Exception Report and submit it to the Project Board.. According to the PRINCE2 Progress practice, if the Project Manager forecasts that stage costs will exceed the upper cost tolerance, this constitutes an exception. The Project Manager must raise an Exception Report and submit it to the Project Board, as the Project Board is responsible for authorizing exceptions and deciding on corrective actions. This ensures that the project remains within the agreed tolerances and that the Board can make informed decisions.

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Quietly borrow funds from the next stage's budget without informing the Project Board.

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Absorb the cost overrun by reducing the quality checks on deliverables.

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Close the project immediately.

Question 2

A project is operating under a commercial contract where the supplier is incentivized to deliver early. However, early delivery increases environmental resource consumption (ESG trade-off). The Project Board needs to evaluate this trade-off. Which practice is primarily responsible for balancing benefits, dis-benefits, and costs?

Accepted Answer

The Business Case practice. The Business Case practice is responsible for balancing benefits, dis-benefits, costs, and risks to ensure the project remains viable and aligned with strategic objectives. When a commercial incentive (early delivery) creates an ESG trade-off (higher resource consumption), that trade-off directly affects the project's value proposition and must be evaluated within the Business Case. The Project Board uses the Business Case to decide whether the net benefit still justifies continued investment.

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The Quality practice

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The Risk practice

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The Progress practice

Question 3

An organization is applying PRINCE2 7 to a complex transformation program. The Executive realizes that the project's benefits realization schedule has drifted by 6 months due to operational delays in adopting the new systems. Who is accountable for ensuring that the Benefits Management Approach is executed post-project?

Accepted Answer

Corporate management and operational owners, as defined in the Benefits Management Approach. In PRINCE2 7, the Benefits Management Approach defines how and by whom benefits will be measured and managed after the project closes. Accountability for executing this approach typically rests with corporate management and operational owners, as they are responsible for realising benefits in the business-as-usual environment. The Project Manager is only responsible for setting up the approach, not for post-project execution.

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Project Assurance

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The Project Manager

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The Senior Supplier

Question 4

During the Initiating a Project process, the Project Manager is defining the Change Control Approach. What is the primary purpose of this approach?

Accepted Answer

To specify how potential issues and changes to baselined products will be logged, assessed, and controlled.. The Change Control Approach defines how the project will manage issues and changes to baselined products, including how they are logged, assessed, and controlled. It is part of the Project Initiation Documentation and ensures that changes are handled consistently and with appropriate authority.

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To outline how staff members will be hired and dismissed during the project.

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To determine how financial invoices are paid to external suppliers.

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To establish how benefits will be measured post-project.

Question 5

What is the primary purpose of the Starting up a Project process?

Accepted Answer

To ensure that the prerequisites for initiating a project are in place.. The Starting up a Project (SU) process is the pre-project process whose purpose is to ensure the prerequisites for initiating a project are in place — specifically, that the project mandate exists, the project team is appointed, the Project Brief is produced, and the initiation stage is planned. It answers the question 'do we have a viable and worthwhile project?' before committing resources to the Initiation Stage. It is deliberately short and ends with a decision (via the Project Board) on whether to proceed to Initiating a Project.

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To construct all specialist products and deliver them to the operational environment.

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To close the project and archive all project records.

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To manage the day-to-day execution of work packages.

Question 6

A project is initiating, and the Project Manager needs to document how risks will be identified, assessed, and controlled throughout the project lifecycle. Which document should be created?

Accepted Answer

Risk Management Approach. The Risk Management Approach should be created to document how risks will be identified, assessed, and controlled throughout the project lifecycle. This document is part of the Project Initiation Documentation and defines the risk management strategy, including procedures, techniques, and responsibilities.

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Risk Register

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Project Product Description

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Business Case

Question 7

During the Closing a Project (CP) process, the Project Manager is handing over products. Which activity ensures that ongoing maintenance, operations, and support arrangements for the project products are formally accepted by the host organization?

Accepted Answer

Handing over products. The 'Handing over products' activity in the Closing a Project process is specifically designed to ensure that the project's products are formally accepted by the host organization, including the arrangements for ongoing maintenance, operations, and support. This activity confirms that the products meet the agreed acceptance criteria and that the necessary operational and support responsibilities have been transferred. It also ensures that any required training, documentation, and support agreements are in place before the project closes.

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Evaluating the project

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Updating the Project Management Plan

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Preparing the End Stage Report

Question 8

During which PRINCE2 process are the Project Management Plan, Risk Management Approach, and Business Case fully developed and baselined?

Accepted Answer

Initiating a Project. The Initiating a Project (IP) process is where the Project Board's authorization to proceed triggers the full development of the Project Management Plan, the Risk Management Approach, and the Business Case, all of which are then baselined. IP takes the Project Brief produced in Starting up a Project and expands it into the complete set of baseline products (including the four management strategies and the Business Case) needed to control the project. Baselining occurs here because the Project Board must approve these products at the 'Authorize the project' activity before delivery begins.

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Managing Product Delivery

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Starting up a Project

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Controlling a Stage

Question 9

During the Closing a Project process, the Project Manager must prepare a Follow-on Action Recommendations log. Who is the primary audience responsible for acting upon these recommendations after the project is closed?

Accepted Answer

Corporate, Program Management, or operational management. The Follow-on Action Recommendations log captures outstanding actions, risks, and issues that cannot be resolved before the project closes and must be handed over to those who will own the products or benefits after closure. PRINCE2 specifies that these recommendations are directed to corporate, programme management, or operational management — the bodies that will continue to manage, operate, or realise benefits from the delivered products. The Project Board and Project Manager are closing out their responsibilities, so they are not the ongoing audience.

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Team Managers

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The Project Manager

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The Project Board

Question 10

In the Directing a Project process, how does the Project Board primarily exercise its day-to-day governance over the project's progress?

Accepted Answer

By reviewing Highlight Reports provided by the Project Manager. In Directing a Project, the Project Board governs by exception. The Project Manager sends regular Highlight Reports summarizing progress, issues, and forecasts, and the Board reviews these to decide whether to continue, change, or stop the project. This is the primary day-to-day governance mechanism within DP.

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By directly managing Team Managers and assigning Work Packages

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By attending daily stand-up meetings with the delivery team

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By rewriting the Project Plan whenever a minor delay occurs

Question 11

During Directing a Project, the Project Board receives an Exception Report from the Project Manager indicating that stage tolerances will be exceeded due to a supplier bankruptcy. What is the correct sequence of actions for the Project Board?

Accepted Answer

Instruct the Project Manager to create an Exception Plan, evaluate it, and then authorize or reject it.. In PRINCE2, when a stage tolerance is forecast to be exceeded, the Project Manager escalates to the Project Board via an Exception Report. The Project Board must then decide whether to request an Exception Plan. If they do, the Project Manager creates the Exception Plan, the Board evaluates it, and then authorizes or rejects it. This sequence ensures the Board retains control over deviations from the agreed tolerances.

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Authorize the replacement supplier immediately and update the Stage Plan themselves.

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Delegate the decision to the Team Manager responsible for the failed supplier.

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Close the project immediately without requesting further analysis.

Question 12

In the Directing a Project (DP) process, when is the Project Board required to authorize the Project Initiation Documentation (PID)?

Accepted Answer

At the end of the Initiating a Project process, as part of authorizing the project.. The Project Initiation Documentation (PID) is assembled during the Initiating a Project (IP) process. Once the PID is complete, the Project Board must review and authorize it in the Directing a Project (DP) process via the 'Authorize the Project' activity. This authorization confirms the business case, project plan, and controls are acceptable, giving the Project Manager the authority to proceed with the delivery stages.

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During the Starting up a Project process before appointing the Project Manager.

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During the Closing a Project process.

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At the start of every single delivery stage.

Question 13

Which PRINCE2 process is triggered immediately after the Project Board authorizes the initiation of a project?

Accepted Answer

Initiating a Project. In PRINCE2, the 'Initiating a Project' process is triggered immediately after the Project Board authorizes the initiation of a project. This authorization occurs during the 'Starting up a Project' process, where the Project Board reviews the Project Brief and gives the go-ahead to initiate. The 'Initiating a Project' process then develops the Project Initiation Documentation (PID), which includes the business case, plans, and controls, before seeking approval to deliver the project.

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Closing a Project

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Managing Product Delivery

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Controlling a Stage

Question 14

A Project Manager wants to ensure that project status reports are effectively consumed by senior executives who have limited time. According to PRINCE2 7 communication management practices, what should the Project Manager do?

Accepted Answer

Tailor the communication format to highlight key decisions, tolerance status, and high-level milestones, matching executive needs.. PRINCE2 7's communication management approach requires tailoring information to the audience's needs, and senior executives need concise, decision-focused reporting. Option A aligns with the principle of 'tailor to suit the project environment' by highlighting key decisions, tolerance status, and high-level milestones so executives can govern efficiently with limited time. This ensures the communication is fit for purpose rather than exhaustive.

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Delegate all executive communication responsibilities entirely to the project support office without review.

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Send a comprehensive 50-page daily report containing all risk logs and issue logs.

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Eliminate all written reports and rely entirely on impromptu hallway conversations.

Question 15

A project is using agile delivery methods within a PRINCE2 framework. The Project Board wants to receive progress updates on product increments rather than lengthy narrative reports. Which PRINCE2 progress reporting product should be tailored to meet this need?

Accepted Answer

Highlight Report. The Highlight Report is a PRINCE2 progress report produced by the Project Manager for the Project Board at regular intervals, summarizing progress, status, and issues. It can be tailored to focus on product increments and agile metrics, making it suitable for the Project Board's need for concise updates. The Checkpoint Report is for the Team Manager to the Project Manager, and the End Stage Report is at stage boundaries.

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Checkpoint Report

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Daily Log

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End Stage Report