PRINCE2F PRINCE2 Practices Practice Question
Which PRINCE2 principle is being applied when the Project Manager escalates an issue that is outside the stage tolerance?
⚠ Common exam trap
Many candidates confuse the stage-based planning and control ('Manage by stages') with the escalation of out-of-tolerance issues ('Manage by exception'), which is a specific control mechanism for handling deviations beyond delegated authority.
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
✓
Manage by exception
The principle of 'Manage by exception' is applied when the Project Manager escalates an issue that exceeds the stage tolerance. This principle establishes that each management level (e.g., Project Manager, Project Board) has defined tolerances (e.g., time, cost, quality) for their delegated authority; if a forecast or actual deviation goes beyond those tolerances, the issue must be escalated to the next management level for a decision. By escalating the out-of-tolerance issue, the Project Manager is following the exception-based control mechanism that is core to PRINCE2.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Manage by stages
Why it's wrong here
Manage by stages concerns dividing the project into controllable chunks with delegated tolerances and stage boundaries, not escalation itself. Escalating a breach of stage tolerance to the board demonstrates the 'manage by exception' principle, which sets defined tolerances and escalates only when they are exceeded.
- ✓
Manage by exception
Why this is correct
Manage by exception gives the Project Manager authority to run the stage within agreed tolerances and mandates escalation only when a forecast breach exceeds them. Escalating the out-of-tolerance issue to the project board is precisely the defined exception trigger.
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Tailor to suit the project environment
Why it's wrong here
Tailoring concerns adapting PRINCE2 to the project's scale, environment and complexity. Escalating an issue beyond stage tolerance is governed by pre-agreed tolerance levels and the 'manage by exception' principle, which defines what authority the Project Manager holds before escalation to the board.
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Continued business justification
Why it's wrong here
Continued business justification concerns whether the project remains viable and aligned to a valid Business Case throughout. Escalating a tolerance breach is about defined authority limits and exception reporting, which is the 'manage by exception' principle, not ongoing justification of the project's value.
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