PRINCE2F Business Case and Organizing Practice Question
A project is being initiated for a new regulatory compliance system. The Executive has delegated day-to-day decision-making to the project manager within defined tolerances. During a project board meeting, a Senior User requests a change that would increase costs beyond stage tolerance but would deliver an additional mandatory compliance benefit. Who should decide how to proceed?
⚠ Common exam trap
The trap here is assuming that a mandatory benefit or the Executive's ownership of the Business Case allows a decision to be made outside the project board's tolerance-setting authority.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
The project board, because the change exceeds delegated tolerances
The project manager works within the tolerances set by the project board. A change that would breach stage cost tolerance must be escalated as an exception. The project board is the body with the authority to approve, reject, or defer such a change, and to revise tolerances if appropriate. This maintains management by exception and proper accountability.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The Executive, because they own the Business Case and can act alone
Why it's wrong here
The Executive is accountable for the Business Case and chairs the project board, but decisions on changes that exceed tolerances are made by the project board collectively, not by the Executive acting alone. The Executive's role includes ensuring the board works together and that decisions are taken properly. Bypassing the board would undermine PRINCE2's organization theme.
- ✓
The project board, because the change exceeds delegated tolerances
Why this is correct
In PRINCE2, the project board sets tolerances for the project manager. When an issue or change is forecast to exceed those tolerances, it must be escalated to the project board for a decision. The board can then approve, reject, or defer the change, and may also adjust tolerances. This preserves management by exception and keeps accountability at the right level.
- ✗
The project manager, because the change delivers a mandatory benefit
Why it's wrong here
The project manager can only authorize changes within the tolerances delegated by the project board. This change exceeds stage cost tolerance, so it must be escalated. A mandatory benefit does not automatically grant the project manager authority to breach tolerances. Proceeding without board approval would violate the PRINCE2 principle of management by exception.
- ✗
The Senior User, because they requested the change and own the benefit
Why it's wrong here
The Senior User is accountable for specifying user needs and monitoring that the solution delivers expected benefits, but individual Senior Users do not have authority to approve changes that exceed project board tolerances. That authority sits with the project board as a collective. The Senior User should raise the change for board consideration, not decide unilaterally.
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Last reviewed September 2026 · checked against the official PeopleCert exam blueprint
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