PRINCE2F PRINCE2 Practices Practice Question
Which PRINCE2 principle is being applied when the Project Manager escalates a tolerance deviation to the Project Board?
⚠ Common exam trap
Candidates often confuse 'Manage by Exception' with 'Continued Business Justification' — the escalation of a tolerance breach is about exceeding delegated limits, not about the project's ongoing viability.
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 'Manage by Exception' principle is applied when the Project Manager escalates a tolerance deviation to the Project Board. This principle delegates decision-making authority to the Project Manager within defined tolerances (e.g., time, cost, quality, scope, risk, and benefit). When a forecast indicates that a tolerance will be exceeded, the Project Manager must escalate the issue to the Project Board, which then decides on corrective action. This ensures that the Project Board only becomes involved when a deviation threatens the project's agreed limits, embodying the 'manage by exception' approach.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Continued Business Justification
Why it's wrong here
This relates to the Business Case.
- ✓
Manage by Exception
Why this is correct
Correct. Escalation of tolerance deviations is management by exception.
- ✗
Learn from Experience
Why it's wrong here
This relates to lessons learned.
- ✗
Focus on Products
Why it's wrong here
This relates to product-based planning.
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Same concept, more angles
3 more ways this is tested on PRINCE2F
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Which PRINCE2 principle is being applied when the Project Manager escalates an issue that is outside the stage tolerance?
medium- A.Manage by stages
- ✓ B.Manage by exception
- C.Tailor to suit the project environment
- D.Continued business justification
Why B: 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.
Variation 2. Which PRINCE2 principle is being applied when a project uses management by exception?
medium- A.Continued business justification
- ✓ B.Manage by exception
- C.Manage by stages
- D.Focus on products
Why B: Management by exception is a key principle where tolerances are set and escalation occurs only when tolerances are forecast to be exceeded.
Variation 3. Which PRINCE2 principle is applied when a Project Manager escalates a forecast tolerance deviation to the Project Board?
medium- A.Manage by stages
- B.Focus on products
- ✓ C.Manage by exception
- D.Continued business justification
Why C: When a Project Manager forecasts that a tolerance (e.g., cost or time) will be exceeded, they escalate to the Project Board. This is the direct application of the 'Manage by exception' principle, which defines tolerances for each management level and requires escalation only when those tolerances are forecast to be breached, allowing normal management within tolerances without board intervention.
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.