The answer is the Business Case. When an Exception Plan is approved to recover from a budget overrun, the Project Manager must update the Business Case because the exception plan alters the project’s forecast costs, benefits, and timeline, which directly impacts the project’s continued justification. PRINCE2 mandates that the Business Case remains viable and approved after any significant deviation, ensuring the project still aligns with organizational objectives. On the PRINCE2 Foundation exam, this question tests your understanding of the integrated management controls—specifically, that an exception plan is not just a schedule fix but a re-baselining that triggers a re-evaluation of the project’s viability. A common trap is to stop at updating the Project Plan, forgetting that the Business Case is the core document justifying the entire project. Memory tip: “Exception Plan changes the numbers; Business Case checks if they still make sense.”
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.
The Project Board has approved an Exception Plan to recover from a budget overrun. The Project Manager updates the Project Plan. What else must the Project Manager update?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
The Business Case
When an Exception Plan is approved to recover from a budget overrun, the Project Plan must be updated to reflect the new cost and schedule baselines. However, the Business Case must also be updated because the exception plan changes the project's forecast costs and benefits, which directly affects the justification for the project. PRINCE2 requires that the Business Case remains viable and approved whenever a significant deviation occurs, ensuring continued alignment with organizational objectives.
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.
✗
The Risk Register
Why it's wrong here
While risks may be updated, the most critical update is the Business Case.
✓
The Business Case
Why this is correct
The Business Case must be updated to reflect the changes from the Exception Plan.
Related concept
Read the scenario before looking for a memorised answer.
✗
The Project Brief
Why it's wrong here
The Project Brief is created at start-up and is not updated after initiation.
✗
The Benefits Management Approach
Why it's wrong here
The Benefits Management Approach may be updated but is not immediately required; the Business Case is key.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often think only the Project Plan needs updating when a new baseline is approved, but PRINCE2 explicitly requires the Business Case to be updated because the exception plan changes the cost-benefit justification, which is the core of the project's approval.
Detailed technical explanation
How to think about this question
In PRINCE2, the Business Case is the key document that justifies the project's continuation; it must be reviewed and updated whenever there is a significant change to the project's cost, time, or scope. The Exception Plan represents a formal deviation from the original plan, and the Project Board's approval implies that the revised costs and benefits are still acceptable. The Project Manager must update the Business Case to reflect the new forecast costs and any changes to the expected benefits, ensuring the project remains viable and aligned with the organization's investment criteria.
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: The Business Case — When an Exception Plan is approved to recover from a budget overrun, the Project Plan must be updated to reflect the new cost and schedule baselines. However, the Business Case must also be updated because the exception plan changes the project's forecast costs and benefits, which directly affects the justification for the project. PRINCE2 requires that the Business Case remains viable and approved whenever a significant deviation occurs, ensuring continued alignment with organizational objectives.
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
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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.
Question Discussion
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