PRINCE2F Practice Question: Overview of PRINCE2 and the project environment
What is the primary purpose of the 'Manage by exception' principle?
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
✓
To delegate authority to the Project Manager within agreed tolerances
Manage by exception means that the Project Board only needs to be involved when tolerances are forecast to be exceeded. This frees them to focus on strategic decisions.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
To delegate authority to the Project Manager within agreed tolerances
Why this is correct
Delegating authority within agreed tolerances is precisely what 'manage by exception' enables: the Project Board sets tolerances for time, cost, scope, quality, risk and benefit, then only intervenes when the Project Manager forecasts a breach. This satisfies the stem's focus on the principle's primary purpose — escalation by exception rather than routine reporting.
- ✗
To ensure the Project Manager is held accountable for all project decisions
Why it's wrong here
Manage by exception delegates authority within agreed tolerances, so the Project Manager decides freely inside them and escalates only breaches; accountability for those decisions sits with the board. It would be correct where a board wants to set boundaries rather than approve every decision.
- ✗
To require the Project Board to approve all changes
Why it's wrong here
Change control operates through the issue and change control approach, with the board approving only changes exceeding delegated tolerances. Manage by exception sets those tolerances so routine changes proceed without board involvement. Requiring approval for every change would be management by instruction.
- ✗
To involve stakeholders at every stage of the project
Why it's wrong here
Manage by exception delegates tolerance boundaries so the next management level intervenes only when these are forecast to be breached, not to schedule stakeholder involvement. It is tempting because engagement underpins the 'defined roles and responsibilities' principle, but that concerns who is accountable, not escalation thresholds.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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.