- A
Continued Business Justification
Why wrong: This relates to the Business Case.
- B
Manage by Exception
Correct. Escalation of tolerance deviations is management by exception.
- C
Learn from Experience
Why wrong: This relates to lessons learned.
- D
Focus on Products
Why wrong: This relates to product-based planning.
Question 1,429 of 1,731
Manage by Exception Principle in PRINCE2
This PRINCE2F practice question tests your understanding of prince2 practices. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
Which PRINCE2 principle is being applied when the Project Manager escalates a tolerance deviation to the Project Board?
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
The 'Manage by Exception' principle is applied when the Project Manager escalates a tolerance deviation to the Project Board. This principle delegates decision-making authority to the Project Manager within defined tolerances (e.g., time, cost, quality, scope, risk, and benefit). When a forecast indicates that a tolerance will be exceeded, the Project Manager must escalate the issue to the Project Board, which then decides on corrective action. This ensures that the Project Board only becomes involved when a deviation threatens the project's agreed limits, embodying the 'manage by exception' approach.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Continued Business Justification
Why it's wrong here
This relates to the Business Case.
- ✓
Manage by Exception
Why this is correct
Correct. Escalation of tolerance deviations is management by exception.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Learn from Experience
Why it's wrong here
This relates to lessons learned.
- ✗
Focus on Products
Why it's wrong here
This relates to product-based planning.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Candidates often confuse 'Manage by Exception' with 'Continued Business Justification' — the escalation of a tolerance breach is about exceeding delegated limits, not about the project's ongoing viability.
Detailed technical explanation
How to think about this question
In PRINCE2, tolerances are set for each management level (e.g., team, project, corporate/programme). The Project Manager operates within project-level tolerances delegated by the Project Board. If a tolerance is forecast to be exceeded, the Project Manager must issue an Exception Report and escalate to the Project Board, which then decides whether to approve a new tolerance, change the plan, or take other corrective action. This mechanism prevents micro-management and ensures the Project Board focuses on strategic decisions only when necessary, aligning with the principle of management by exception.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A practitioner preparing for the PRINCE2F exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Got this wrong? Here's your next step.
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FAQ
Questions learners often ask
What does this PRINCE2F question test?
PRINCE2 Practices — This question tests PRINCE2 Practices — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Manage by Exception — The 'Manage by Exception' principle is applied when the Project Manager escalates a tolerance deviation to the Project Board. This principle delegates decision-making authority to the Project Manager within defined tolerances (e.g., time, cost, quality, scope, risk, and benefit). When a forecast indicates that a tolerance will be exceeded, the Project Manager must escalate the issue to the Project Board, which then decides on corrective action. This ensures that the Project Board only becomes involved when a deviation threatens the project's agreed limits, embodying the 'manage by exception' approach.
What should I do if I get this PRINCE2F question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Same concept, more angles
3 more ways this is tested on PRINCE2F
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Which PRINCE2 principle is being applied when the Project Manager escalates an issue that is outside the stage tolerance?
medium- A.Manage by stages
- ✓ B.Manage by exception
- C.Tailor to suit the project environment
- D.Continued business justification
Why B: The principle of 'Manage by exception' is applied when the Project Manager escalates an issue that exceeds the stage tolerance. This principle establishes that each management level (e.g., Project Manager, Project Board) has defined tolerances (e.g., time, cost, quality) for their delegated authority; if a forecast or actual deviation goes beyond those tolerances, the issue must be escalated to the next management level for a decision. By escalating the out-of-tolerance issue, the Project Manager is following the exception-based control mechanism that is core to PRINCE2.
Variation 2. Which PRINCE2 principle is being applied when a project uses management by exception?
medium- A.Continued business justification
- ✓ B.Manage by exception
- C.Manage by stages
- D.Focus on products
Why B: Management by exception is a key principle where tolerances are set and escalation occurs only when tolerances are forecast to be exceeded.
Variation 3. Which PRINCE2 principle is applied when a Project Manager escalates a forecast tolerance deviation to the Project Board?
medium- A.Manage by stages
- B.Focus on products
- ✓ C.Manage by exception
- D.Continued business justification
Why C: When a Project Manager forecasts that a tolerance (e.g., cost or time) will be exceeded, they escalate to the Project Board. This is the direct application of the 'Manage by exception' principle, which defines tolerances for each management level and requires escalation only when those tolerances are forecast to be breached, allowing normal management within tolerances without board intervention.
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Last reviewed: Jul 4, 2026
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