PRINCE2F Overview of PRINCE2 and Principles Practice Question
A project manager is leading a project to develop a new customer relationship management system. The Project Board has set tolerances for time and cost, and the project manager is expected to manage the project within these limits. Which PRINCE2 principle is being applied when the project manager only escalates issues that exceed these tolerances?
⚠ Common exam trap
Watch out — candidates often confuse manage by exception with continued business justification, as both involve the Project Board's oversight but address different aspects of governance.
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
✓
Manage by exception
Manage by exception is the PRINCE2 principle that enables the Project Board to set tolerances and delegate authority to the project manager, who then manages within those limits and escalates only when an exception is forecast. This principle ensures efficient use of management time and provides clear escalation paths. In the scenario, the project manager is operating within the time and cost tolerances set by the Project Board, and only escalates issues that exceed these tolerances, which is a direct application of manage by exception.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Manage by exception
Why this is correct
Manage by exception is the principle that establishes tolerances for the six aspects of project performance (time, cost, scope, quality, risk, and benefits) and delegates authority to the project manager to manage within those tolerances. The project manager only escalates to the Project Board when an exception is forecast, which is exactly what is described in the scenario.
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Learn from experience
Why it's wrong here
Learn from experience involves seeking and applying lessons from previous projects and within the current project. It is not about managing within tolerances or escalating exceptions. This principle is about continuous improvement and knowledge management, which, while valuable, does not address the specific scenario of the project manager operating within delegated authority.
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Tailor to suit the project environment
Why it's wrong here
Tailoring is about adapting PRINCE2 to the project's specific needs, size, and complexity. It does not govern how the project manager operates within tolerances or when to escalate. While tailoring might influence how tolerances are set, the principle being applied in the scenario is specifically about managing by exception, not about tailoring the method.
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Continued business justification
Why it's wrong here
Continued business justification ensures that the project remains viable and aligned with business objectives throughout its lifecycle. While important, it does not directly relate to the project manager's authority to manage within tolerances and escalate only exceptions. This principle focuses on the business case, not on the delegation of authority and escalation mechanism.
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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.