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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: PRINCE2 Processes | 28% | - Apply the seven Processes
|
| Topic 2: PRINCE2 Practices | 40% | - Apply and tailor the seven Practices
|
| Topic 3: People & Project Context Integration | 20% | - Sustainability, digital & tailoring
|
| Topic 4: PRINCE2 Principles | 12% | - Apply the seven PRINCE2 Principles in context
|
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NEW QUESTION # 35
While the project mandate is being prepared, the Mayor asks the LOB Portfolio Director, acting at the business layer, to select and appoint a suitable project executive for LouisShopping.
Is this an appropriate application of the organization practice, and why?
Answer: C
Explanation:
The correct answer is B . PRINCE2 distinguishes the business layer from the project management layer. The business layer commissions projects, establishes the broader organizational context, and appoints an appropriate project executive who will represent the business interest and become ultimately accountable for the project's success within the project board.
The scenario explicitly states that the LOB Portfolio Director is acting at the business layer . Consequently, selecting and appointing an appropriate project executive is consistent with the responsibilities associated with that level of governance.
Option A is too broad. The appointment is not appropriate merely because the Mayor can delegate the activity to any senior stakeholder. The suitability arises because the Portfolio Director is acting as the relevant business-layer representative. Option C incorrectly assumes that the Mayor must personally make the appointment because of the project's civic significance; PRINCE2 does not impose such a requirement.
Option D similarly assigns the responsibility automatically to the Head of Portfolio Office, even though the scenario explicitly identifies the Portfolio Director as the relevant business-layer representative.
The key distinction is therefore between business-layer governance and project-level management. The project executive is appointed from the business layer and subsequently leads the project board.
PRINCE2 7 reference topics: Organization practice; business layer; project executive; commissioning a project; project board structure and accountability.
NEW QUESTION # 36
While preparing the project plan during initiation, the project manager proposes that stage 2 should end at the Council's financial year-end. This would allow the decision on funding for stage 3 to coincide with the Council's annual budget process.
Is this an appropriate application of the 'manage by stages' principle, and why?
Answer: A
Explanation:
The correct answer is A . PRINCE2 management stages are governance constructs and do not have to correspond mechanically to technical phases or fixed time intervals. Their boundaries should be positioned where they provide effective control and meaningful decision points for the project board.
Aligning the end of stage 2 with the Council's financial year-end is therefore appropriate because the continuation decision for stage 3 depends on a significant external funding decision. The boundary creates a natural point at which actual progress can be assessed, the business case can be reviewed, future funding confirmed, and the next stage authorized with current information. PRINCE2's management-by-stages approach supports progressive planning and explicit review points rather than committing detailed authority for the entire project at initiation.
Option B is incorrect because completing a single specialist product does not automatically determine the end of a management stage. Stage boundaries are selected to provide appropriate management control. Option C is too restrictive: risk is an important consideration when determining stage length, but it is not the sole factor.
Option D similarly overstates technical complexity as the determining factor. Business decisions, risk, uncertainty, planning horizon, organizational constraints, and external decision points can all influence stage design.
PRINCE2 7 reference topics: Manage by stages; management stage design; planning horizon; stage boundaries; authorization of the next stage.
NEW QUESTION # 37
At the end of the initiation stage, the Regeneration Manager submits the project plan and business case for review. The Portfolio Director releases funding for both stages 2 and 3 and instructs the project manager to provide only a progress report at the end of stage 2, without a project board decision before stage 3 begins.
Is this an appropriate application of the 'manage by stages' principle, and why?
Answer: B
Explanation:
The correct answer is D . Under the manage by stages principle, a PRINCE2 project is divided into management stages that create defined governance and decision points. The project manager manages the current authorized stage, while the project board retains control over whether the project should proceed into the next management stage.
At a stage boundary, the project manager normally provides the information required for the project board to assess performance, review the updated business case and project plan, consider risks and issues, and evaluate the next stage plan. The board can then decide whether continued investment remains justified and whether the next stage should be authorized. PeopleCert guidance describes management stages as controlled segments with review points at which continuation can be approved or stopped.
Releasing funding for stages 2 and 3 does not remove the governance requirement to reassess the project before stage 3 starts. Option A confuses the project manager's delegated day-to-day authority within an authorized stage with authority to proceed automatically across stage boundaries. Option B concerns reporting customization rather than stage authorization. Option C incorrectly focuses on which corporate entity provides funding rather than the PRINCE2 control mechanism being tested.
PRINCE2 7 reference topics: Manage by stages; Managing a stage boundary; Directing a project; continued business justification; authorization of a stage.
NEW QUESTION # 38
During stage 3, the project manager forecasts that the stage-level recycling tolerance will be exceeded. The project manager records the matter in the issue register and sends only an issue report to the project board.
Is this an appropriate application of the progress practice, and why?
Answer: D
Explanation:
The correct answer is D . In PRINCE2, an exception exists when it is forecast that an agreed tolerance will be exceeded. The critical point is that the breach does not have to have occurred already. Once the project manager forecasts that stage tolerance cannot be maintained, the matter exceeds the project manager's delegated authority and must be escalated to the project board.
An issue report may contain detailed analysis of an issue, and the issue register can record the underlying matter. However, neither replaces the specific progress-control mechanism required when stage tolerance is forecast to be exceeded. The project manager must produce an exception report , explaining the cause of the forecast deviation, its consequences, available options, and an appropriate recommendation. The project board can then decide whether to request an exception plan or take another authorized course of action.
Option A therefore understates the governance consequence of the tolerance breach. Option B incorrectly treats the matter solely as an off-specification; the decisive factor for progress control is that an authorized stage-level tolerance is forecast to be exceeded. Option C is incorrect because the immediate escalation is from the project manager to the project board, not automatically to the portfolio office.
PRINCE2 7 reference topics: Progress practice; stage tolerances; exception; exception report; escalation; management by exception.
NEW QUESTION # 39
A new law requires everyone working on public-infrastructure projects to hold an appropriate security clearance. The project manager records the legislation as an external event in the issue register so that its effects can be assessed.
Is this an appropriate application of the issues practice, and why?
Answer: C
Explanation:
The correct answer is A . The legislation is an external event that has already occurred : a new legal requirement now applies to people working on public-infrastructure projects. It therefore represents an issue rather than merely an uncertain future risk. Recording it in the issue register enables the project team to assess its impact and determine what action may be necessary.
The effect could be significant. Existing or planned personnel may not possess the required security clearance, which could constrain the availability of resources, delay mobilization, alter supplier arrangements, increase costs, or affect scheduled delivery. The project manager should therefore ensure the event is captured and assessed rather than waiting until every consequence is known.
Option B is incorrect because external events that affect project objectives should still be managed through the project's agreed governance and issue-management controls. Option C would delay formal management of an event whose implications may require immediate investigation and action. Option D incorrectly assumes that externally generated issues belong exclusively to the business layer. The business may need to participate in resolving some consequences, but the project team must manage impacts on the project within its authority and escalation arrangements.
The key distinction is that an issue concerns something that has happened or is currently relevant , whereas a risk concerns uncertainty about a future event.
PRINCE2 7 reference topics: Issues practice; external events; issue register; issue assessment; resource impacts; risk-versus-issue distinction.
NEW QUESTION # 40
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