PRINCE2F PRINCE2 Practices Practice Question
A Project Manager is reviewing the Risk Register at the end of a stage. Several risks have been identified, and the Project Manager needs to decide which risks should be escalated to the Project Board. Which TWO factors should the Project Manager consider when determining whether a risk should be escalated? (Choose two.)
⚠ Common exam trap
The trap here is thinking that risks must be escalated based on who owns them or their type, rather than on whether they exceed tolerances or require higher authority.
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
✓
The risk's probability and impact exceed the risk tolerances defined in the Risk Management Approach.
Risks should be escalated to the Project Board when they exceed the risk tolerances set for the project or when the response requires authority or resources beyond the Project Manager's delegation. These factors ensure that significant risks are addressed at the appropriate management level, protecting the project's business case.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The risk has been identified as a threat and requires a fallback plan.
Why it's wrong here
Identifying a risk as a threat and requiring a fallback plan does not by itself necessitate escalation. Fallback plans are part of risk response planning and can be managed by the Project Manager within delegated tolerances. Escalation is triggered by exceeding tolerances or needing higher authority, not merely by the nature of the response.
- ✓
The risk's probability and impact exceed the risk tolerances defined in the Risk Management Approach.
Why this is correct
Risk tolerances define the acceptable level of risk exposure for the project. If a risk's probability and impact exceed these tolerances, it must be escalated to the Project Board, as it may threaten the project's business case. The Project Manager cannot unilaterally accept risks beyond delegated tolerances.
- ✓
The risk response requires a decision or resources that are beyond the Project Manager's authority.
Why this is correct
If the risk response requires decisions or resources outside the Project Manager's delegated authority, it must be escalated. The Project Board holds overall authority and can approve additional funding, change scope, or make strategic decisions. The Project Manager escalates to ensure the risk is managed at the appropriate level.
- ✗
The risk is assigned to a risk owner who is a member of the Project Board.
Why it's wrong here
Assigning a risk owner who is a Project Board member does not automatically require escalation. Risk owners are responsible for managing the risk at their level. Escalation depends on whether the risk exceeds tolerances or requires a decision beyond the Project Manager's authority, not on the identity of the risk owner.
- ✗
The risk is related to a supplier's performance and the supplier is contracted by the Senior Supplier.
Why it's wrong here
Supplier-related risks are not automatically escalated. The Project Manager manages supplier performance within the project's tolerances. Escalation is required only if the risk exceeds tolerances or requires decisions beyond the Project Manager's authority. The Senior Supplier's involvement in contracting does not determine escalation.
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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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