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PRINCE2F PRINCE2 Practices Practice Question

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

⚠ Common exam trap

Test-takers frequently think the Project Manager can simply request more tolerance or continue reporting normally, failing to recognize that PRINCE2 mandates immediate escalation via an Exception Report when tolerance is forecast to be exceeded.

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

Raise an Exception Report to the Project Board

D is correct because PRINCE2 requires the Project Manager to escalate any forecast deviation beyond tolerance to the Project Board via an Exception Report. This triggers a formal decision process, ensuring the board can authorize corrective action before the situation worsens.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Ask the Project Board for more tolerance

    Why it's wrong here

    Formal escalation via Exception Report is required first.

  • Close the project

    Why it's wrong here

    Closing the project is a decision for the Project Board.

  • Continue with the current plan and report in the next Highlight Report

    Why it's wrong here

    Escalation is immediate, not delayed.

  • Raise an Exception Report to the Project Board

    Why this is correct

    Correct. Escalate via Exception Report.

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