The correct answer is to continue and report the deviation in the next Highlight Report. This is because the project is currently running 5% over time, which remains within the agreed stage tolerance of 10%, and while the trend is expected to continue, it has not yet breached that tolerance threshold. In PRINCE2, tolerance management dictates that the Project Manager must manage within the delegated limits and use the Highlight Report as the standard communication channel for progress and forecast deviations that are still within tolerance; an Exception Report is only triggered when a deviation is forecast to exceed the stage tolerance. On the PRINCE2 Foundation exam, this question tests your understanding of the escalation hierarchy and the precise point at which management by exception kicks in—a common trap is to assume any negative trend warrants an immediate Exception Report. Remember the memory tip: “Within tolerance, report; beyond tolerance, escalate.”
PRINCE2F People: organizations, teams, and leadership Practice Question
This PRINCE2F practice question tests your understanding of people: organizations, teams, and leadership. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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.
A project is running over time by 5% against the stage tolerance of 10%. The Project Manager expects this trend to continue. What should the Project Manager do?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Continue and report the deviation in the next Highlight Report
The project is within the stage tolerance of 10% (currently at 5% over time), and the Project Manager expects the trend to continue but has not yet exceeded the tolerance. According to PRINCE2, the Project Manager should continue managing the work within the agreed tolerance and report the deviation in the next Highlight Report, as this is the standard mechanism for communicating progress and forecast deviations that are still within tolerance. Raising an Exception Report is only required when a deviation is forecast to exceed the stage tolerance, which is not the case here.
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.
✓
Continue and report the deviation in the next Highlight Report
Why this is correct
The deviation is within tolerance, so the PM can manage it and report as normal.
Related concept
Read the scenario before looking for a memorised answer.
✗
Raise an Exception Report immediately
Why it's wrong here
An Exception Report is only needed when a tolerance is forecast to be exceeded.
✗
Ask the Project Board for more time
Why it's wrong here
Not necessary as the tolerance is not breached.
✗
Update the Business Case to reflect the delay
Why it's wrong here
The Business Case does not need updating for a minor delay within tolerance.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse a deviation that is still within tolerance with one that is forecast to exceed tolerance, leading them to incorrectly choose the Exception Report option (B) when the correct action is to continue and report via the Highlight Report.
Detailed technical explanation
How to think about this question
In PRINCE2, tolerances are management by exception thresholds set by the Project Board for each stage. The Highlight Report is a periodic report (typically weekly or monthly) that includes progress, forecast, and any issues or risks. The Project Manager must monitor actuals against tolerances and escalate only when a forecast breach is expected. This ensures the Project Board is not overloaded with minor deviations and can focus on exceptions that truly threaten the project's viability.
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.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
People: organizations, teams, and leadership — This question tests People: organizations, teams, and leadership — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Continue and report the deviation in the next Highlight Report — The project is within the stage tolerance of 10% (currently at 5% over time), and the Project Manager expects the trend to continue but has not yet exceeded the tolerance. According to PRINCE2, the Project Manager should continue managing the work within the agreed tolerance and report the deviation in the next Highlight Report, as this is the standard mechanism for communicating progress and forecast deviations that are still within tolerance. Raising an Exception Report is only required when a deviation is forecast to exceed the stage tolerance, which is not the case here.
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.
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Question Discussion
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