PRINCE2F Overview of PRINCE2 and Principles Practice Question
A project manager is leading a PRINCE2 project to develop a new software application. The project board has defined tolerances for time, cost, and scope. During a stage, the project manager forecasts that the stage will exceed its time tolerance by two days. According to the PRINCE2 principle 'manage by exception', what should the project manager do?
⚠ Common exam trap
The trap here is thinking that the project manager should wait until the tolerance is actually exceeded, but the principle requires escalation as soon as a breach is forecast.
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
✓
Escalate the forecast breach to the project board and provide options for resolution.
The principle 'manage by exception' establishes that project board members set tolerances for the project manager, and the project manager only escalates if a tolerance is forecast to be exceeded. In this scenario, the stage time tolerance is forecast to be breached, so the project manager must escalate to the project board with options. This enables the board to make a decision and maintain control.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Wait until the stage actually exceeds the tolerance before notifying the project board.
Why it's wrong here
Manage by exception requires proactive escalation when a tolerance is forecast to be breached, not after it has already happened. Waiting until the breach occurs means the project manager has allowed the project to go out of tolerance without giving the project board the opportunity to intervene early. This reactive approach contradicts the principle, which is designed to enable timely decisions.
- ✗
Take corrective action to bring the stage back within tolerance without informing the project board.
Why it's wrong here
Manage by exception requires that if a tolerance is forecast to be exceeded, the project manager must escalate to the next management level. Taking corrective action without informing the project board might be appropriate if the deviation is within tolerance, but here the forecast is to exceed the stage time tolerance. Therefore, the project manager cannot act unilaterally; they must escalate to the project board for a decision.
- ✓
Escalate the forecast breach to the project board and provide options for resolution.
Why this is correct
Manage by exception mandates that the project manager escalates to the project board as soon as a tolerance is forecast to be exceeded. The project manager should present the issue along with options and a recommendation. This allows the project board to make an informed decision, such as granting a tolerance or changing the plan. Escalation is the correct action per the principle.
- ✗
Adjust the stage plan to absorb the delay by reducing quality checks, then inform the project board at the next stage boundary.
Why it's wrong here
Adjusting the plan to absorb the delay by reducing quality is not acceptable because it could compromise the project's products. Moreover, manage by exception requires immediate escalation when a tolerance is forecast to be exceeded, not waiting until the next stage boundary. The project manager cannot unilaterally change the plan in a way that affects quality without approval, and they must escalate promptly.
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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
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