PRINCE2F Overview of PRINCE2 and Principles Practice Question
A Project Manager is working on a project to implement a new customer relationship management system. The Project Board has set tolerances for time, cost, and scope. During a stage, the Project Manager realizes that the project will exceed the time tolerance by two weeks. According to the PRINCE2 principle of manage by exception, what should the Project Manager do?
⚠ Common exam trap
The trap here is thinking that the Project Manager can always fix issues within a stage, but when a tolerance will be breached, escalation is mandatory.
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 issue to the Project Board by raising an exception report.
Under the manage by exception principle, the Project Manager has the authority to manage the stage within the agreed tolerances. If a tolerance is forecast to be exceeded, the Project Manager must escalate the issue to the Project Board by raising an Exception Report. This allows the Board to decide how to proceed, such as granting a new tolerance or changing the project. The other options either ignore the breach or assume authority that the Project Manager does not have.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Ignore the issue as long as the overall project remains within the business case.
Why it's wrong here
Tolerances are set at stage level and must be respected. Ignoring a forecast breach is not acceptable under manage by exception. The Project Board sets tolerances to delegate authority; if they are breached, the Board must be informed. The overall business case viability is a separate consideration, but the principle requires escalation at the stage level when tolerances are threatened.
- ✗
Consult the Team Manager to adjust the stage plan to accommodate the delay.
Why it's wrong here
Adjusting the stage plan to accommodate a delay that exceeds tolerance is not within the Project Manager's authority. The Project Manager can only make adjustments within the agreed tolerances. If the time tolerance will be exceeded, the Project Manager must escalate to the Project Board. Consulting the Team Manager might be part of developing options, but the formal escalation is still required.
- ✗
Take corrective action to bring the project back within tolerance without informing the Board.
Why it's wrong here
While taking corrective action is part of the Project Manager's role, if the tolerance is forecast to be exceeded, the principle of manage by exception requires escalation. The Project Manager cannot unilaterally decide to exceed tolerances. The scenario states that the project will exceed the time tolerance, so the Project Manager must escalate rather than attempt to resolve it silently.
- ✓
Escalate the issue to the Project Board by raising an exception report.
Why this is correct
Manage by exception requires that the Project Manager only escalates to the Project Board when a tolerance is forecast to be exceeded. In this scenario, the time tolerance is expected to be breached, so the Project Manager must raise an Exception Report to inform the Board and seek their decision. This allows the Board to make an informed choice, such as approving a new baseline or stopping the project.
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Last reviewed September 2026 · checked against the official PeopleCert exam blueprint
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