PRINCE2F PRINCE2 Practices Practice Question
What does the 'management by exception' principle in PRINCE2 mean?
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
✓
The Project Board sets tolerances and only reviews the project if tolerances are forecast to be exceeded
The 'management by exception' principle in PRINCE2 means that the Project Board sets tolerances for time, cost, quality, scope, risk, and benefits, and only requires the Project Manager to escalate if those tolerances are forecast to be exceeded. This allows the Project Manager to manage within tolerances without constant board involvement, empowering them to make day-to-day decisions while the Board focuses on strategic issues.
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 Project Board sets tolerances and only reviews the project if tolerances are forecast to be exceeded
Why this is correct
This is the core of management by exception.
- ✗
The Project Manager must report all decisions to the Project Board immediately
Why it's wrong here
That would be micro-management, not management by exception.
- ✗
The Project Board makes all decisions for the project
Why it's wrong here
The Project Board sets tolerances; the PM makes decisions within them.
- ✗
The Project Manager can ignore plans and work independently
Why it's wrong here
The PM must work within agreed plans and tolerances.
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