PRINCE2F PRINCE2 Processes Practice Question
A project is in an early stage and the Project Manager discovers a new risk that could cause a delay. The risk is within the stage tolerance. What should the Project Manager do?
⚠ Common exam trap
PRINCE2F often tests whether candidates escalate every new risk to the Project Board, confusing the need to inform with the formal Exception Report trigger, which is only a forecast breach of tolerance.
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
✓
Update the risk register and manage the risk within the stage
In PRINCE2, the Project Manager is authorized to manage risks and issues within the stage tolerance defined in the Stage Plan. If the risk is within tolerance, the Project Manager should update the Risk Register, take appropriate management action, and continue managing the stage without escalating to the Project Board.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Stop the project and seek guidance
Why it's wrong here
Stopping the project is disproportionate; a risk inside stage tolerance is managed by the Project Manager within the stage, without escalation or premature closure. Stopping is tempting as a cautious response, and would be correct only if the risk threatened the business case beyond tolerances set by the board.
- ✗
Immediately raise an Exception Report to the Project Board
Why it's wrong here
An Exception Report is only required when a tolerance is forecast to be exceeded; this risk sits within stage tolerance, so board escalation is unwarranted. Raising one is tempting because escalation feels diligent, and would be correct once the risk breaches stage tolerance and the board must decide.
- ✓
Update the risk register and manage the risk within the stage
Why this is correct
Because the risk falls within stage tolerance, the Project Manager handles it at that level: recording it in the risk register, assessing and implementing a response, and monitoring it. Escalation to the Project Board is only required when tolerance would be exceeded.
- ✗
Revise the project plan and inform the board
Why it's wrong here
Revising the project plan and informing the board exceeds the Project Manager's delegated authority; within stage tolerance the risk is handled at stage level without board escalation. Plan revision is tempting because it feels proactive, and would be correct only once the risk breaches tolerance and an Exception Plan is required.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official PeopleCert exam blueprint
This PRINCE2F practice question is part of Courseiva's free PeopleCert certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PRINCE2F exam.