PRINCE2F People: organizations, teams, and leadership Practice Question
Who is responsible for defining the project's tolerance levels?
⚠ Common exam trap
A common misconception is that the Project Manager defines project tolerances, but in PRINCE2, the Project Manager only sets stage and work package tolerances, while the Project Board sets the overarching project tolerances.
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
✓
Project Board
In PRINCE2, the Project Board is responsible for defining project-level tolerance levels for time, cost, quality, scope, risk, and benefits. This is because the Project Board represents the business, user, and supplier interests and sets the boundaries within which the Project Manager can operate without needing to escalate. The Project Manager works within these tolerances and only escalates if forecasts exceed them.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Senior User
Why it's wrong here
Tolerance levels are set by the Project Board, which owns the project's boundaries; the Senior User represents user interests and specifies requirements, so cannot authorise tolerances. Delegating tolerance-setting to a Senior User is tempting because that role does define acceptance criteria and benefits, but authority over tolerances sits with the Board.
- ✗
Project Manager
Why it's wrong here
Tolerance levels are set by the project board, which owns the project within the boundaries delegated by corporate or programme management; the project manager works within them. It is tempting because the project manager manages day-to-day delivery, and would be correct for escalating a forecast breach of those tolerances.
- ✗
Team Manager
Why it's wrong here
Team managers manage the delivery of work packages within the tolerances the project manager assigns to them; they do not define project-level tolerances. It is tempting because team managers handle work-package-level boundaries, and would be correct for agreeing the tolerance for a single work package.
- ✓
Project Board
Why this is correct
The Project Board sets the tolerances within which the Project Manager may manage by exception, defining the permissible deviation in time, cost, scope, quality, risk and benefit. This authority cannot be delegated to the Project Manager or Team Manager, since tolerances bound the delegated mandate itself.
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