PRINCE2F PRINCE2 Processes Practice Question
During the Directing a Project process, the Project Board is reviewing a Stage Plan at a stage boundary. The Project Manager has reported that the stage is forecast to exceed its cost tolerance. What should the Project Board do FIRST?
⚠ Common exam trap
The trap here is jumping to project closure or Business Case updates when the correct first response to a forecast tolerance breach is to request an Exception Plan to restore control.
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
✓
Ask the Project Manager to produce an Exception Plan.
When a stage is forecast to exceed its cost tolerance, the Project Board should first request an Exception Plan from the Project Manager. The Exception Plan details how the Project Manager will recover from the exception and is a key output of Managing a Stage Boundary. Other actions like closing the project or updating the Business Case may follow, but the immediate step is to regain control through an Exception Plan.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Immediately close the project because tolerances have been breached.
Why it's wrong here
Closing the project is a drastic action that is not automatically triggered by a single tolerance breach. The Project Board has several options, including requesting an Exception Plan, changing tolerances, or stopping the project. The first step is to understand the exception and decide how to respond, not to close immediately. Premature closure would only occur if the Board decides the project is no longer viable.
- ✗
Update the Business Case to reflect the increased costs.
Why it's wrong here
While the Business Case may need updating eventually, it is not the first action. The Project Board must first address the exception by requesting an Exception Plan or taking other control actions. Updating the Business Case without a recovery plan would not resolve the tolerance breach. The Business Case is reviewed as part of the exception handling, but the immediate step is to regain control.
- ✗
Authorise the next stage without changes to the plan.
Why it's wrong here
Authorising the next stage without addressing the exception would ignore the tolerance breach and could lead to further overruns. The Project Board cannot simply proceed as if nothing happened; it must decide how to handle the exception. This could involve requesting an Exception Plan, changing tolerances, or stopping the project. Authorising without changes is not appropriate when tolerances are exceeded.
- ✓
Ask the Project Manager to produce an Exception Plan.
Why this is correct
When a stage is forecast to exceed its cost tolerance, the Project Manager should raise an Exception Report. The Project Board then considers the exception and, if it decides to continue, requests an Exception Plan. The Exception Plan shows how the Project Manager will recover from the exception and is produced during Managing a Stage Boundary. Asking for the Exception Plan is the first step to regaining control.
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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.