CCNA PRINCE2 Practices Questions

When a tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report.

PRINCE2 defines five threat responses: Avoid, Reduce, Fallback, Transfer, Accept, and Share. 'Transfer' is a valid response to shift the risk to a third party.

The Change Authority is delegated by the Project Board to approve changes within defined limits. Option B is correct.

The Business Case is reviewed at each stage boundary to confirm that the project remains viable and to update the justification before proceeding to the next stage.

The End Stage Report is provided by the Project Manager to the Project Board at the end of each stage to enable review.

Opportunity responses include Exploit (maximize probability/impact), Enhance (increase), Share, and Reject.

The 'assess' step includes evaluating probability and impact to prioritize risks.

A baseline is a snapshot of a configuration item's state at a specific point in time. It is used to provide a fixed reference for control and management, ensuring changes are made in a controlled manner.

The Business Case includes reasons, options, expected benefits, dis-benefits, timescale, costs, investment appraisal, and major risks. Quality criteria and product descriptions belong to the Quality theme.

The Business Case practice in PRINCE2 provides a mechanism to judge whether the project is desirable (benefits outweigh costs), viable (achievable within constraints), and achievable (feasible with available resources). It is the central justification for initiating and continuing the project, ensuring ongoing business justification throughout the project lifecycle.

The purpose is to provide the Project Board with information to review current stage, approve next stage plan, and update the Business Case.

The Project Initiation Documentation (PID) is the key output of Initiating a Project. Option D is correct.

The Executive (Senior Responsible Owner) owns the Business Case and is ultimately responsible for its maintenance. The Project Manager may assist but is not the owner.

The Risk Register is the repository for all risk management information throughout the project.

Continued Business Justification is one of the seven PRINCE2 principles, ensuring the project remains viable throughout.

The PID includes the Business Case, Project Plan, and Risk Register. The Project Brief is a predecessor document, and the Benefits Review Plan is a separate document.

Fallback is used when a response plan is implemented only if the risk occurs, often after other responses have failed or are not feasible.

The risk management procedure starts with 'Identify' risks, followed by Assess, Plan, Implement, and Communicate.

PRINCE2 defines quality as 'fit for purpose', meaning the product must meet its stated requirements and satisfy user needs.

The Project Manager is responsible for maintaining the Business Case as part of day-to-day management. The Executive (SRO) owns and approves it.

Project Assurance is an independent role from the Project Board, responsible for monitoring compliance with standards and providing objective oversight.

The PID includes the Project Plan, Business Case, and Risk Register (among others).

In PRINCE2, the classification of acceptance criteria (e.g., 'Must', 'Should', 'Could') is a customer decision. When a criterion classified as 'Should' is discovered during a quality review, the correct action is to seek confirmation from the customer that the classification is acceptable, as only the customer can decide whether a desirable criterion can be downgraded or reclassified. This ensures the project remains aligned with customer expectations and avoids unauthorized changes to the Project Product Description.

Management by Exception means that deviations within tolerance are handled by the PM, but deviations forecast to exceed tolerance are escalated to the Board.

When a tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report to seek direction.

The Product Description defines the product's purpose, composition, quality criteria, and acceptance methods.

The Project Plan is approved by the Project Board, as it sets the baseline for the project's scope, schedule, and cost.

The Quality Management Approach defines how quality will be managed, including quality methods, tools, and responsibilities.

Managing a Stage Boundary provides the Project Board with sufficient information to review the current stage and plan the next stage, and to decide whether to continue the project.

PRINCE2 defines six threat responses: Avoid, Reduce, Fallback, Transfer, Accept, and Share. Options A, C, and D are correct; Exploit and Enhance are opportunity responses.

PRINCE2 recommends product-based planning, which includes creating a Product Breakdown Structure (PBS) and Product Flow Diagram.

Project Assurance is independent, performed by Project Board members or delegates, and covers all aspects of the project.

In PRINCE2, the Project Manager is responsible for maintaining the Business Case throughout the project. This includes monitoring actual costs and benefits against the Business Case, updating it with any changes, and ensuring it remains viable. The Project Manager does not create the Business Case (that is the Executive's role) but is accountable for its ongoing maintenance and reporting.

In PRINCE2, the risk owner is accountable for the overall management of a risk, including monitoring and ensuring that appropriate responses are implemented. The risk actionee, on the other hand, is responsible for performing specific actions or tasks assigned as part of the risk response plan. Option C correctly captures this distinction between accountability and execution.

Avoid and Reduce are threat responses. Exploit and Share are opportunity responses, and Reject is also an opportunity response.

Product-based planning focuses on defining products first, then activities. It includes Product Breakdown Structure, Product Flow Diagram, and Product Descriptions.

The PRINCE2 project management team includes the Executive, Senior User, Senior Supplier, Project Manager, Team Manager, Project Assurance, and Project Support. The Project Board consists of the Executive, Senior User, and Senior Supplier. 'Project Sponsor' is not a PRINCE2 role; 'Steering Committee' is not a PRINCE2 term.

Since the change budget is exhausted, the project manager cannot approve further changes within their delegated authority. Therefore, they must escalate to the Project Board via an Exception Report.

The Business Case practice is the correct answer because it is the PRINCE2 practice that specifically defines the reasons for initiating a project and ensures that the project remains desirable, viable, and achievable throughout its lifecycle. It provides the justification for continued investment by requiring regular review and update of the business justification, which is documented in the Business Case. Without a valid Business Case, the project should be stopped.

The quality practice includes Quality Planning, Quality Control, and Quality Assurance. Configuration Management is part of the Change practice.

The PID and Business Case are refined and approved during Initiating a Project. The Project Brief is from Starting Up a Project, and the Risk Register is created during this process but not listed as a key output; it's part of the PID. However, the question asks for outputs, and both PID and Business Case are key outputs.

A Request for Change is a proposed modification to a baseline, while an Off-specification is a failure to meet a requirement. Option B is correct.

Option B is correct because PRINCE2 requires that each risk has a named risk owner who is accountable for managing that risk and implementing the planned responses. This ensures clear accountability and proactive risk management throughout the project lifecycle.

The Executive (also known as Senior Responsible Owner) is accountable for the Business Case and securing funding.

The project management team includes the Project Board (Executive, Senior User, Senior Supplier), Project Manager, Team Manager, and Project Assurance. Project Support is also a role but not part of the management team? Actually Project Support is a role. The three correct ones are Executive, Senior User, and Project Manager.

PRINCE2 defines quality as 'fit for purpose' — meeting agreed requirements and fulfilling its purpose.

The Risk Register records identified risks, their analysis, and planned responses.

A Work Package is the document that authorizes the Team Manager to create one or more products. It contains details of the work to be done and constraints.

This process provides the Project Board with information to decide whether to continue with the next stage, based on review of the current stage's performance and updated plans.

The Organising practice defines the roles and responsibilities within the project management team.

Options B and D are correct. A Product Description includes quality criteria (B) and acceptance methods (D). The risk budget and stage boundaries are not part of a Product Description.

Issue types are: Request for Change, Off-specification, and Problem/Concern. Risk is not an issue; it is a separate practice.

In PRINCE2, tolerances are the permissible deviations from a plan without needing to escalate to the next management level. The six standard tolerances are Time, Cost, Quality, Scope, Risk, and Benefit. Time (B) and Cost (D) are explicitly defined as tolerances for managing stage and project plans.

Options A and B are correct. The six tolerances in PRINCE2 are time, cost, quality, scope, risk, and benefits. Options C, D, and E are not standard PRINCE2 tolerances; they are management approaches or budgets.

The Business Case includes reasons, options, expected benefits, dis-benefits, timescale, costs, investment appraisal, and major risks. Expected benefits and major risks are two of these components.

The purpose is to provide the Project Board with sufficient information to review the current stage, approve the next stage plan, and confirm continued business justification.

The three issue types are Request for Change, Off-specification, and Problem/Concern.

Exploit and Enhance are opportunity responses. Avoid and Transfer are threat responses. Accept can be used for both.

The PBS is a hierarchical diagram that identifies all products to be produced, decomposing the project product into its constituent parts.

Option C is correct because in PRINCE2, the Team Plan is produced by the Project Manager (or sometimes the Team Manager) to provide the Team Manager with detailed information about the work to be done at the team level. It is derived from the Stage Plan and focuses on the specific activities, resources, and timelines for a team's work package, ensuring alignment with the overall project objectives.

The five threat responses are: avoid, reduce, transfer, accept, share. Fallback is not a separate response; it is part of a plan.

The PID includes the Business Case, Project Plan, Project Approach, and other baselines. The Project Brief is an input to the PID, and the Project Product Description is a supporting document but not a core component of the PID itself. Correct: Business Case and Project Plan.

Project Assurance is independent of the Project Manager and provides assurance to the Project Board.

The Highlight Report is produced by the Project Manager at intervals defined in the Communication Management Approach to update the Project Board on progress.

The Project Manager maintains the Business Case on behalf of the Executive. While the Executive owns it, the Project Manager is responsible for its day-to-day maintenance.