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PRINCE2F People: organizations, teams, and leadership Practice Question

A Project Manager is leading a project that is underperforming. The Project Board has requested an Exception Report. In the report, the Project Manager identifies that the project is likely to exceed its tolerance for cost. The Project Board must decide how to proceed. Which role is responsible for making the decision on the Exception Report?

⚠ Common exam trap

The trap here is assuming that the Change Authority can decide on an Exception Report, when in fact exceptions that breach tolerances must be escalated to the Project Board unless explicitly delegated.

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

✓

Project Board

The Project Board is accountable for the overall direction and success of the project. When tolerances are forecast to be exceeded, the Project Manager escalates the issue through an Exception Report. The Project Board reviews the report and decides on the appropriate action, such as approving an Exception Plan, changing the project's scope, or terminating the project. This ensures that the business case remains viable and that the project stays aligned with strategic objectives.

Answer analysis

Option-by-option breakdown

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

  • ✗

    Change Authority

    Why it's wrong here

    The Change Authority is delegated by the Project Board to make decisions on Requests for Change within defined limits. An Exception Report, however, deals with a forecast breach of tolerances and is escalated to the Project Board, not to the Change Authority. The Change Authority does not have the authority to decide on exceptions unless specifically delegated.

  • ✓

    Project Board

    Why this is correct

    The Project Board is responsible for making decisions on Exception Reports. When a project or stage is forecast to exceed its tolerances, the Project Manager escalates the issue to the Project Board via an Exception Report. The Project Board then decides whether to stop, redirect, or continue the project, and may authorize a new stage or exception plan.

  • ✗

    Senior User

    Why it's wrong here

    The Senior User is a member of the Project Board and participates in decisions on Exception Reports. However, the Senior User alone does not make the decision; it is a collective responsibility of the Project Board. The Senior User provides the user perspective but does not have unilateral authority to decide on exceptions.

  • ✗

    Project Manager

    Why it's wrong here

    The Project Manager is responsible for preparing the Exception Report and recommending options, but does not have the authority to make the decision. The Project Board is the decision-making body for exceptions that exceed stage or project tolerances. The Project Manager must escalate the issue and await direction.

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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

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.