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| Section | Objectives |
|---|---|
| Processes | - Controlling a stage - Initiating a project - Directing a project - Starting up a project - Managing product delivery - Managing a stage boundary - Closing a project |
| Practices | - Business case - Quality - Organizing - Progress - Plans - Issues - Risk |
| Principles | - Apply the PRINCE2 principles in context |
| People | - People management and effective collaboration |
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NEW QUESTION # 42
During stage 4, the business identifies a need for additional funding to extend LouisShopping advertising beyond project closure so that more businesses are attracted to Louistown. The project board must communicate the business need and resulting direction to the project team.
Which role should lead this business-related ongoing direction?
Answer: C
Explanation:
The correct answer is A - Project executive . Within the directing a project process, the project board provides ongoing direction throughout the project. When that direction principally concerns the business interest , the project executive is the appropriate board member to lead it.
The scenario concerns additional funding and the continuation of advertising beyond project closure so that the wider business objective of attracting more businesses to Louistown can be supported. These matters relate directly to organizational investment, business justification, and the relationship between the project and the business layer. The project executive represents the business interest on the project board and maintains the principal interface between project governance and the commissioning organization.
Option B is incorrect because the project manager receives direction from the project board and manages the project on a day-to-day basis; the project manager does not replace the board's business governance role.
Option C is incorrect because project assurance independently evaluates whether the project is being conducted appropriately; it does not lead business direction. Option D represents the user interest, ensuring that the project products meet user needs and support expected benefits, but additional investment and business-layer direction fall primarily within the executive's domain.
PRINCE2 7 reference topics: Directing a project; give ongoing direction; project executive; business interest; business layer; project-board responsibilities.
NEW QUESTION # 43
RISK
Here are three items of information relating to the 'risk' practice.
In which management product (A-E) should each item be recorded?
Choose only ONE management product for each item of information. Each management product may be used once, more than once, or not at all.
Answer: A,D
Explanation:
The correct mapping is Item 1 - A; Item 2 - E; Item 3 - E .
Item 1 belongs in the risk register. The cracked pane itself is an existing problem and therefore an issue.
However, the item explicitly identifies a separate uncertainty : the supplier may fail to meet the future replacement date, potentially delaying later work. Because this is an uncertain future event affecting project objectives, it is a risk and should be recorded in the risk register.
Item 2 belongs in the risk management approach. It describes the agreed procedure and frequency for reviewing project risks. The risk management approach defines how risk management will be performed, including responsibilities, procedures, review arrangements, scales, reporting, and supporting techniques.
Item 3 also belongs in the risk management approach. A red-amber-green classification is part of the project's agreed risk assessment and prioritization framework rather than information about an individual risk.
The distinction is fundamental: the risk register contains individual identified risks and their management information , whereas the risk management approach defines the project's overall method, procedures, scales, responsibilities, and controls for managing risk .
PRINCE2 7 reference topics: Risk practice; risk register; risk management approach; uncertainty; risk assessment; risk review arrangements; risk scales.
NEW QUESTION # 44
Immediately after initiation is authorized, the Head of the Portfolio Office instructs the LouisShopping project to adopt the Council's mature issue management approach without any project-specific review or tailoring.
Is this an appropriate application of the issues practice, and why?
Answer: C
Explanation:
The correct answer is C . PRINCE2 encourages projects to make use of established organizational standards and procedures, but these should still be assessed against the specific project context. A mature organizational issue management approach is a valuable starting point; it is not automatically appropriate in every detail for every project.
The project manager should consider characteristics such as the nature and complexity of the products, delivery method, contractual environment, project scale, stakeholder arrangements, regulatory requirements, and existing organizational controls. These factors may justify tailoring issue categories, decision authorities, reporting routes, escalation arrangements, change-control procedures, or configuration and version-control arrangements.
Option A is therefore incorrect because maturity does not eliminate the need to verify suitability. Option B incorrectly assumes that portfolio funding removes the project's ability or requirement to tailor PRINCE2 arrangements to its context. Organizational requirements may impose constraints, but the project still needs an appropriate management approach. Option D is also incorrect because configuration and version-control considerations can form an integral part of issue and change-control arrangements; they are not matters that must be left exclusively to delivery teams.
The correct approach is to adopt where suitable and adapt where necessary , while preserving required organizational and project governance controls.
PRINCE2 7 reference topics: Issues practice; issue management approach; tailoring; project context; configuration management; change control; organizational standards.
NEW QUESTION # 45
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 # 46
Before the end of stage 2, the project board authorizes a change that adds more trees and seating to the external landscaping. The change can be delivered in stage 3 without any forecast breach of project tolerance.
While preparing the next stage plan, the project manager incorporates the additional products and work, updates the relevant product descriptions and product register entries, and reviews whether the project initiation documentation needs to be updated.
Is this an appropriate application of 'prepare the next stage plan', and why?
Answer: C
Explanation:
The correct answer is A . When preparing the next stage plan, the project manager must incorporate all relevant authorized changes that affect the products or work to be undertaken in the forthcoming management stage. The stage plan must represent the current authorized baseline rather than an obsolete version of what was originally intended.
The additional trees and seating have already been authorized by the project board, and the change can be incorporated without a forecast breach of overall project tolerance. The project manager should therefore reflect the additional products and activities in the stage 3 plan, revise affected product descriptions and product-register information, and determine whether corresponding elements of the project initiation documentation need updating.
Option B is incorrect because an exception plan is not required for every authorized change. Exception planning is used where agreed tolerance is forecast to be exceeded and the higher management level requests a replacement plan. The scenario explicitly states that project tolerance is not forecast to be breached. Option C incorrectly introduces mandatory re-authorization by the business layer. Option D is incorrect because preparing the next stage plan is a project manager responsibility; project assurance may independently review the resulting information but does not prepare it instead.
PRINCE2 7 reference topics: Managing a stage boundary; prepare the next stage plan; authorized changes; product descriptions; product register; PID maintenance; exception plans.
NEW QUESTION # 47
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