CCNA Prince2 Practices Questions

When a stage-level tolerance is forecast to be exceeded, the Project Manager must escalate via an Exception Report. This is management by exception.

Management by exception dictates that when a tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report. Continuing without escalation is not allowed.

The Organising practice defines the project management team structure and assigns roles and responsibilities. It includes the Project Board, Project Manager, Team Managers, and other roles.

The Directing a Project process is designed to enable the Project Board to make key decisions and exercise overall control over the project. It covers the board's responsibilities from project initiation through closure, including authorizing stages, reviewing progress, and providing strategic direction.

The Project Initiation Documentation (PID) is the key output of the Initiating a Project process, providing a comprehensive basis for the project.

PRINCE2 defines opportunity responses: exploit, enhance, share, and reject. Avoid and transfer are threat responses.

Tolerances are set for each management level; the Project Board sets stage tolerances. The Project Manager can reallocate tolerance within a stage if the total is not exceeded.

The Executive is the single person ultimately accountable for the project's Business Case and its continued viability. PRINCE2 assigns responsibility for maintaining the Business Case to the Executive because they own the project's justification and must ensure it remains aligned with organizational objectives throughout the project lifecycle.

The Project Manager is responsible for maintaining the Business Case throughout the project because PRINCE2 assigns the day-to-day management of the Business Case to the Project Manager, who must ensure it remains viable and aligned with project progress. The Project Manager updates the Business Case with actual costs, benefits, and risks, and presents it to the Project Board for approval at key decision points. This is defined in PRINCE2's Business Case management process, where the Project Manager owns the document's maintenance, not its approval.

Management by exception means that the Project Manager is allowed to manage within agreed tolerances; if a tolerance is forecast to be exceeded, the matter is escalated to the Project Board.

The Executive is the single individual accountable for the project's success and chairs the Project Board in PRINCE2. This role provides the business justification, secures funding, and makes key strategic decisions, ensuring the project remains viable and aligned with organizational objectives.

The purpose is to provide the Project Board with information to approve the next stage and review the current stage's performance.

The Managing a Stage Boundary process is designed to provide the Project Board with sufficient information to review the current stage's performance, approve the next stage plan, and decide whether to continue the project. It produces an End Stage Report summarizing the current stage's results and a Stage Plan for the next stage, enabling informed governance decisions.

A Request for Change is a proposal for a change to a product that has been agreed or baselined. An Off-specification is something that should be provided but is not (or is forecast not to be) provided.

The Plans practice defines the means of delivering the products by establishing a structured approach to planning, including the creation of project and stage plans. This facilitates communication and control by providing a clear roadmap for stakeholders and enabling progress tracking against baselines. It is not about defining quality criteria, managing changes, or assigning roles, which are covered by other PRINCE2 practices.

Request for Change and Off-specification are two types of issue. The third is Problem/Concern. All three are valid; the question asks for two of them.

C is correct because when a project forecasts exceeding its cost tolerance, the Project Manager must escalate the issue to the Project Board via an Exception Report. This is a PRINCE2 management by exception principle: tolerances are delegated limits, and exceeding them requires board-level decision-making, not unilateral action by the Project Manager.

The Project Board consists of Executive, Senior User, and Senior Supplier.

Planning steps: design the plan, define products, identify activities, estimate, and schedule/document.

In Controlling a Stage, the Project Manager authorizes work packages to Team Managers. The Project Board authorizes stages, not work packages directly.

The Quality Review technique is used to assess whether a product meets its quality criteria and to identify errors.

A Request for Change is a proposal for a change to the project's baselines, while an Off-specification is something that should be provided but is not (or is forecast not to be).

When a tolerance is forecast to be exceeded, the PM must escalate via an Exception Report to the Project Board. This is management by exception.

A Request for Change is a proposal for a modification to a product that has been approved, while an Off-specification is a product that does not meet its specification.

The Highlight Report is produced by the Project Manager and sent to the Project Board and stakeholders to provide a summary of progress.

To increase the probability and/or impact of an opportunity, use the 'exploit' response.

An Off-specification is an issue where a product should be provided but is not (or is forecast not to be) according to its specification. This includes a product delivered that does not meet its specification.

Option C is correct. Management by exception means that the Project Board sets tolerances and only gets involved if those tolerances are forecast to be exceeded. This empowers the Project Manager to manage within the tolerances without constant board oversight.

The Quality Management Approach defines how quality will be managed, including quality criteria and acceptance methods.

Management by exception is a key principle where tolerances are set and escalation occurs only when tolerances are forecast to be exceeded.

The Project Initiation Documentation (PID) is the key output of the Initiating a Project process. It defines the project's scope, objectives, and approach.

The three predefined issue types are Request for Change, Off-specification, and Problem/Concern. Risk is a different management product.

The Risk Owner is responsible for managing the risk overall; the Risk Actionee is assigned to implement specific response actions.

According to the management by exception principle, when a tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report.

A Product Flow Diagram shows the order in which products will be developed and the dependencies between them. It is a key input to the activity network.

PRINCE2 defines five threat responses and five opportunity responses; 'Exploit' is a response to an opportunity to ensure it happens.

Avoid and Reduce are threat responses; Exploit and Enhance are opportunity responses.

Managing a Stage Boundary (SB) is designed to provide the Project Board with information to review the current stage's performance, approve the next stage plan, and update the Business Case and project plan.

The risk owner is responsible for managing the risk, while the risk actionee performs specific actions.

An RFC proposes a modification to a product that has been approved or baselined; an Off-spec is something that should be provided but is not (or will not be) as specified.

The Executive (Senior Responsible Owner) is the single point of accountability for the business justification in PRINCE2.

An Off-specification is something that should be provided but is not (or is wrong). A Request for Change is a proposed modification to a baselined product.

Options B and D are correct. The Project Board is responsible for approving plans and resources (B) and providing direction and control (D). Maintaining the Business Case is the PM's job; producing Team Plans is the Team Manager's; managing day-to-day activities is the PM's.

The Business Case components include reasons, options, expected benefits, dis-benefits, timescale, costs, investment appraisal, and major risks. A product description is part of product-based planning, not the Business Case.

The Executive (SRO) owns the Business Case and is responsible for maintaining its viability. The Project Manager maintains it on a day-to-day basis.

The Business Case includes reasons, options, benefits, dis-benefits, timescale, costs, investment appraisal, and major risks. The Risk Register is separate.

The Highlight Report is produced by the Project Manager and sent to the Project Board at regular intervals to provide a summary of progress during a stage.

The Business Case includes expected benefits, dis-benefits, costs, timescale, risks, and investment appraisal. Options B and E are correct; A, C, and D are not standard components.

The Business Case includes reasons, options, expected benefits, dis-benefits, timescale, costs, investment appraisal, and major risks. Benefits review plan is part of the project plan, not the Business Case.

In PRINCE2, the Project Manager is responsible for maintaining the Business Case throughout the project. This includes monitoring the project's viability against the Business Case, updating it with actual costs and benefits, and escalating any deviations to the Project Board. The Project Manager ensures the Business Case remains a living document that reflects the current justification for the project.

The Progress practice is used to monitor and compare actual achievements against planned performance, and to assess the impact of deviations. When a work package takes longer than expected, the project manager uses Progress to evaluate the effect on the schedule and decide whether to escalate to the project board. This aligns with PRINCE2's principle of managing by stages and using tolerances to control deviations.

The Highlight Report is produced by the Project Manager for the Project Board at regular intervals to summarize progress and issues.

The Initiating a Project process is where the project's foundations are established, and its key output is the Project Initiation Documentation (PID). The PID consolidates all essential information—including the Business Case, Project Plan, and Risk Register—into a single, coherent document that defines what the project will deliver, why, how, and against what constraints. It serves as the baseline for decision-making and is formally approved before the project proceeds to the next stage.

According to the management by exception principle, when a stage tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report. The Project Manager cannot unilaterally increase the budget or ignore the breach.

An Off-specification is something that should be provided but is not (a gap), whereas a Request for Change is a proposal for a change that, if implemented, would alter an approved baseline.

The Project Board members (Executive, Senior User, Senior Supplier) are responsible for project assurance. They delegate assurance tasks but remain accountable. The Project Manager does not perform assurance; that would compromise independence.

The Issue Register records all issues including requests for change, off-specifications, and problems/concerns. The Configuration Item Record tracks product versions, and the Quality Register tracks quality activities.

A Request for Change is a proposal for a modification, while an Off-specification is something that should have been provided but is missing or not working.

Management by exception requires escalation via an Exception Report to the Project Board when a tolerance is forecast to be exceeded.

Project Assurance is responsible for independent oversight, ensuring that the project adheres to standards and that the Project Board's interests are protected.

The Business Case practice is responsible for establishing and maintaining the justification for the project, including the link between objectives and expected benefits. During the Initiating a Project process, the Business Case must be refined to ensure that all benefits are clearly traceable to the project's objectives, as this alignment is critical for ongoing viability decisions. The project manager should use the Business Case practice to address this gap by updating the Business Case to explicitly map each benefit to a specific project objective.

The Executive (Senior Responsible Owner) is the owner of the Business Case. The Project Manager maintains (updates) the Business Case on behalf of the Executive.

The purpose is to provide the Project Board with sufficient information to review the current stage's performance and approve the next stage plan.

The purpose of Managing a Stage Boundary is to provide the Project Board with sufficient information to review the current stage, approve the next stage plan, and confirm continued business justification.

The Product Description defines quality criteria and acceptance methods. Option C is correct.

The Risk Register is the document used to record and track risks.

Avoid is the response where action is taken to eliminate the threat by changing the plan or approach.

Team plans are created by the team manager during the Managing Product Delivery process.

In PRINCE2, risk responses for opportunities include exploit, enhance, share, and reject. 'Enhance' is an appropriate response to maximize the probability or impact of an opportunity.

The Managing a Stage Boundary process is designed to provide the Project Board with sufficient information to review the current stage's performance, approve its completion, and authorize the next stage plan. This ensures that the project remains viable and aligned with business justification before committing further resources.