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| Section | Objectives |
|---|---|
| Topic 1: PRINCE2 Project Management Practices | - Progress - Issues - Business case - Organizing - Risk - Plans - Quality |
| Topic 2: People | - Leading successful teams - Effective communication - Leading successful change |
| Topic 3: PRINCE2 Project Management Processes | - Managing product delivery - Closing a project - Controlling a stage - Starting up a project - Initiating a project - Managing a stage boundary - Directing a project |
| Topic 4: Project Context and Tailoring | - Digital and data management - Tailoring PRINCE2 to the project context - Project scale and complexity - Delivery methods and approaches - Sustainability - Organizational context - Commercial context |
| Topic 5: PRINCE2 Project Management Principles | - Manage by stages - Learn from experience - Define roles, responsibilities and relationships - Manage by exception - Focus on products - Ensure continued business justification - Tailor to suit the project |
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NEW QUESTION # 56
BUSINESS CASE
Here are three statements related to the 'business case' practice.
In which management product should each statement be recorded?
Choose only ONE management product for each statement. Each management product can be used once, more than once, or not at all.
Answer: B,C,E
Explanation:
The correct mapping is Statement 1 - F; Statement 2 - B; Statement 3 - A .
Statement 1 belongs in the commercial management approach because it concerns the commercial and sourcing arrangements for delivery. The use of an external supplier for most specialist work is a supplier and procurement consideration and therefore needs to be addressed through the project's commercial management arrangements.
Statement 2 belongs in the benefits management approach because it specifies a measurable target, identifies how achievement will be monitored, and allocates responsibility for reviewing the resulting evidence. Although the target concerns sustainability, the statement is principally about how the target's achievement will be measured and reviewed. Those arrangements are characteristic of benefits-management planning.
Statement 3 belongs in the business case because the committed funding relates directly to the investment required to undertake the project and therefore forms part of the project's justification and financial basis.
The distractors serve different purposes. The sustainability management approach addresses how sustainability will be managed throughout the project; the end stage report records stage performance; and the project brief establishes the project's initial foundation during starting up a project. The question tests the ability to distinguish closely related management products according to the specific information each is designed to control.
PRINCE2 7 reference topics: Business case practice; commercial management approach; benefits management approach; investment justification; management products.
NEW QUESTION # 57
The LouisShopping project is part of the LOB portfolio and is now in the 'initiating a project' process. The project manager asks the portfolio office to support preparation of the digital and data management approach.
Why is this involvement appropriate during the 'agree the management approaches' activity?
Answer: D
Explanation:
The correct answer is D . During agree the management approaches , the project determines how the various aspects of management will be handled and ensures that those approaches align with relevant organizational strategies, policies, standards, and established practices. A project operating within a portfolio does not develop its digital and data arrangements in isolation.
The LOB portfolio office is therefore an appropriate source of specialist support because it can ensure that the project's digital and data management approach conforms to portfolio-wide data governance standards and technical requirements . This can include requirements concerning information architecture, access, security, storage, retention, tooling, ownership, and integration with portfolio information systems.
Option A is incorrect because PRINCE2 does not mandate the stated rigid sequencing in which the digital and data management approach must always be finalized before the communication management approach.
Management approaches are interdependent and may be developed iteratively. Option B describes legitimate content of digital and data management but does not explain why the portfolio office's involvement is specifically appropriate. Option C makes an unsupported generalization about linear-sequential delivery necessarily producing more documentation than iterative or incremental delivery.
The decisive factor is organizational alignment: project-specific management arrangements must operate consistently with applicable business and portfolio standards.
PRINCE2 7 reference topics: Initiating a project; agree the management approaches; digital and data management approach; portfolio standards; governance; tailoring.
NEW QUESTION # 58
The risk register states that excavation may cause subsidence and damage nearby historic buildings. The planned response is to survey the buildings and monitor vibration during excavation. The project executive is named as risk owner and the project manager as the sole risk action owner, even though operational specialists will perform the surveys and monitoring.
Is this an appropriate assignment, and why?
Answer: A
Explanation:
The correct answer is D . PRINCE2 distinguishes between the risk owner and the risk action owner . The risk owner is responsible for managing, monitoring, and controlling an assigned risk, including ensuring that an appropriate response is established. A risk action owner is responsible for carrying out a specific agreed response action.
In the scenario, the project executive may legitimately be assigned ownership if that allocation is appropriate to the nature and significance of the risk. However, the response consists of operational activities-surveying buildings and monitoring vibration-that will actually be performed by specialists. Naming the project manager as the sole action owner merely because the project manager coordinates project delivery does not accurately allocate responsibility for implementing those specific actions.
Option A therefore overstates the requirement for the project manager to own every response action. Option B focuses only on seniority and potential effect on business justification, rather than addressing the inappropriate action ownership. Option C is incorrect because PRINCE2 does not require the risk owner and risk action owner to be the same person.
Clear allocation matters because it establishes precisely who monitors the overall exposure and who is accountable for implementing each agreed response action.
PRINCE2 7 reference topics: Risk practice; risk owner; risk action owner; risk responses; ownership and accountability; risk register.
NEW QUESTION # 59
During stage 3, several BuildyBrick subcontractors are working on different work packages. The project manager is concerned that lessons identified by one team will not reach the others and could lead to rework, delay or additional cost. The project manager therefore holds a fortnightly cross-team 'lunch and learn' session.
Is this an appropriate application of the 'learn from experience' principle, and why?
Answer: B
Explanation:
The correct answer is A . The learn from experience principle requires learning to occur throughout the project lifecycle, not merely during initiation or closure. Lessons should be sought, recorded where appropriate, communicated to those who can use them, and incorporated into current or future decisions and ways of working.
The fortnightly cross-team session directly addresses the project manager's concern that lessons emerging in one work package may otherwise remain isolated. Sharing them across teams allows corrective knowledge to be applied while it can still prevent rework, delay, cost escalation, or repeated mistakes. Official PeopleCert material emphasizes that lessons should be considered before starting, captured during delivery, and actively applied; simply recording a lesson without changing future behavior does not constitute effective learning.
Option B describes another legitimate source of lessons-previous projects-but does not explain the specific benefit demonstrated in the scenario, which concerns lessons arising across teams during the current stage .
Option C contradicts PRINCE2's expectation that lessons improve project performance rather than being regarded as non-productive overhead. Option D incorrectly postpones learning until the end of the stage, when the opportunity to prevent immediate repetition may already have passed.
PRINCE2 7 reference topics: Learn from experience; lessons log; knowledge sharing; applying lessons throughout the project lifecycle.
NEW QUESTION # 60
During initiation, the project executive asks the project manager to evaluate a credible business option that omits the underground car park. The project manager includes an investment appraisal of that option in the full business case, despite the main contractor's objection.
Is this an appropriate application of the business case practice, and why?
Answer: A
Explanation:
The correct answer is A . The purpose of the business case is to provide the information needed to determine whether the project represents a desirable, viable, and achievable investment. Developing that justification requires the project to evaluate credible alternatives rather than assuming that the initially proposed solution is automatically the optimum investment.
The option without the underground car park is described as credible. It is therefore appropriate for the project manager to include an investment appraisal of that option so that decision-makers can compare its costs, benefits, risks, dis-benefits, and overall value with those of the preferred solution. The main contractor's objection does not remove the project's responsibility to examine legitimate business alternatives; supplier preferences must not determine investment justification.
Option B is incorrect because PRINCE2 does not impose a universal requirement for customer and supplier organizations to maintain completely separate business cases. Option C incorrectly treats initial scope as immutable. During development of the business case, alternative configurations can be evaluated when this helps determine the most appropriate investment. Option D similarly assumes that one anticipated benefit- parking income-precludes examination of other options. A benefit is an input to investment appraisal, not a reason to suppress alternatives.
The scenario therefore demonstrates objective option appraisal as part of sound business justification.
PRINCE2 7 reference topics: Business case practice; business options; investment appraisal; justification; desirability, viability and achievability; initiating a project.
NEW QUESTION # 61
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