PRINCE2F PRINCE2 Processes Practice Question
The Project Manager has identified an issue that could cause a delay in the current stage. The issue cannot be resolved within the stage's tolerance. What should the Project Manager do?
⚠ Common exam trap
PRINCE2F often tests whether candidates understand that stage tolerance breaches must be escalated via an Exception Report — the trap is picking the 'fix it locally' option (updating the Stage Plan) which violates Management by Exception.
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
✓
Raise an Exception Report and seek direction from the Project Board
When an issue is forecast to exceed stage-level tolerance, PRINCE2 requires the Project Manager to raise an Exception Report and escalate to the Project Board, because tolerances are the delegated authority limits. The Board then decides whether to approve an Exception Plan, change the project, or stop it. This preserves the principle of Management by Exception.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Close the project and produce an End Project Report
Why it's wrong here
Closing the project is a premature response to a stage-level issue; the Project Manager should escalate to the Project Board via an exception report, which decides the remedy. It is tempting because tolerance breaches do trigger escalation, but project closure applies only when the business case no longer holds.
- ✗
Update the Stage Plan to accommodate the delay and inform the Project Board
Why it's wrong here
The Project Manager cannot unilaterally rewrite the Stage Plan once the stage's tolerance is forecast to be exceeded; the Project Board must be asked to approve an Exception Plan. Updating the plan and merely informing the Board is tempting because escalation is recognised, but it reverses the decision-making order.
- ✗
Record the issue in the Daily Log and continue with the plan
Why it's wrong here
Recording the issue in the Daily Log suits minor problems handled within the stage, but a tolerance breach must be escalated as an exception to the Project Board, which decides whether to authorise a Exception Plan. The Daily Log is tempting because it is the routine home for day-to-day issues.
- ✓
Raise an Exception Report and seek direction from the Project Board
Why this is correct
When an issue exceeds the stage's agreed tolerance, the Project Manager must escalate by raising an Exception Report, which formally notifies the Project Board that the stage's delegated authority is breached. This triggers the Board to assess the deviation and either approve a revised plan or take corrective action, satisfying the PRINCE2 principle of management by exception.
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JA
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.