PRINCE2F PRINCE2 Processes Practice Question
What is the difference between a Highlight Report and an Exception Report?
⚠ Common exam trap
Test-takers frequently confuse the producer or audience of the reports (e.g., thinking Team Managers produce Highlight Reports) rather than focusing on the trigger mechanism—periodic vs. exception-based—which is the core distinction PRINCE2 tests.
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
✓
Highlight Reports are periodic; Exception Reports are triggered by a tolerance deviation
The Highlight Report is a periodic report produced at intervals defined in the Communication Management Approach, while the Exception Report is an ad-hoc report triggered when a tolerance deviation is forecast or has occurred. The Highlight Report keeps the Project Board informed of progress within tolerances, whereas the Exception Report is used to escalate a deviation that cannot be brought back within tolerance without a decision from the Project Board.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Highlight Reports are produced by the Team Manager; Exception Reports by the Project Manager
Why it's wrong here
Both are produced by the PM.
- ✓
Highlight Reports are periodic; Exception Reports are triggered by a tolerance deviation
Why this is correct
The key difference is the trigger: periodic vs. exception.
- ✗
Highlight Reports contain financial information; Exception Reports contain schedule information
Why it's wrong here
Both can contain financial and schedule info.
- ✗
Highlight Reports are for the Project Board; Exception Reports are for the Project Manager
Why it's wrong here
Both are for the board.
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