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Question 1 of 10
1. Question
Excerpt from a policy exception request: In work related to Delivering the work package as part of third-party risk at a credit union, it was noted that a third-party vendor failed to provide the required quality records upon completion of a security software module. The Team Manager reported that the technical work was finished within the 10-day tolerance, but the formal handover to the Project Manager was delayed because the quality criteria verification was not documented in the Quality Register. According to PRINCE2, what is the mandatory action the Team Manager must take before the work package can be considered delivered?
Correct
Correct: In the Managing Product Delivery process, specifically the ‘Deliver a Work Package’ activity, the Team Manager is responsible for ensuring that all products defined in the Work Package are complete and that all quality activities associated with those products have been finished and approved. Only after these criteria are met can the Team Manager notify the Project Manager that the Work Package is complete.
Incorrect: Updating the Project Plan and requesting stage boundary extensions are responsibilities of the Project Manager during the Managing a Stage Boundary process, not the Team Manager. Issuing Highlight Reports is a Project Manager responsibility during the Controlling a Stage process; Team Managers provide Checkpoint Reports to the Project Manager. Archiving products without verifying quality criteria violates the PRINCE2 principle of Focus on Products and the specific requirements of the Deliver a Work Package activity, which requires formal quality approval.
Takeaway: A Work Package is only considered delivered when all products are complete, quality activities are finished, and the Project Manager is formally notified of the completion.
Incorrect
Correct: In the Managing Product Delivery process, specifically the ‘Deliver a Work Package’ activity, the Team Manager is responsible for ensuring that all products defined in the Work Package are complete and that all quality activities associated with those products have been finished and approved. Only after these criteria are met can the Team Manager notify the Project Manager that the Work Package is complete.
Incorrect: Updating the Project Plan and requesting stage boundary extensions are responsibilities of the Project Manager during the Managing a Stage Boundary process, not the Team Manager. Issuing Highlight Reports is a Project Manager responsibility during the Controlling a Stage process; Team Managers provide Checkpoint Reports to the Project Manager. Archiving products without verifying quality criteria violates the PRINCE2 principle of Focus on Products and the specific requirements of the Deliver a Work Package activity, which requires formal quality approval.
Takeaway: A Work Package is only considered delivered when all products are complete, quality activities are finished, and the Project Manager is formally notified of the completion.
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Question 2 of 10
2. Question
An incident ticket at a listed company is raised about Refining the Business Case during transaction monitoring. The report states that a project has transitioned from the Starting up a Project process into the Initiating a Project process without updating the initial justification. The internal audit department has flagged this as a compliance risk because the Project Board is about to review the Project Initiation Documentation (PID). According to PRINCE2, what is the primary purpose of refining the Business Case at this specific stage?
Correct
Correct: In PRINCE2, the outline Business Case created during the Starting up a Project process is high-level. During the Initiating a Project process, it must be refined into a detailed Business Case. This refined version includes more accurate costs, timescales, and risks, which are essential for the Project Board to make an informed decision on whether the project is worth the investment before authorizing it.
Incorrect: The Benefits Management Approach is a separate document that outlines how and when benefits will be measured, and many benefits are realized after the project has closed, not just before the final stage. The Business Case is not a static document; it must be updated and reviewed at every stage boundary to ensure continued business justification. The Executive always retains ownership of the Business Case and is responsible for the project’s value for money; this responsibility is never transferred to the Project Manager.
Takeaway: Refining the Business Case during initiation transforms a high-level justification into a detailed document necessary for formal project authorization.
Incorrect
Correct: In PRINCE2, the outline Business Case created during the Starting up a Project process is high-level. During the Initiating a Project process, it must be refined into a detailed Business Case. This refined version includes more accurate costs, timescales, and risks, which are essential for the Project Board to make an informed decision on whether the project is worth the investment before authorizing it.
Incorrect: The Benefits Management Approach is a separate document that outlines how and when benefits will be measured, and many benefits are realized after the project has closed, not just before the final stage. The Business Case is not a static document; it must be updated and reviewed at every stage boundary to ensure continued business justification. The Executive always retains ownership of the Business Case and is responsible for the project’s value for money; this responsibility is never transferred to the Project Manager.
Takeaway: Refining the Business Case during initiation transforms a high-level justification into a detailed document necessary for formal project authorization.
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Question 3 of 10
3. Question
A regulatory guidance update affects how a credit union must handle Registers (Issue, Risk, Quality, etc.) in the context of business continuity. The new requirement implies that all uncertainties that could affect the delivery of the project’s benefits must be captured and tracked with specific focus on their probability and impact. As the project to migrate member data to a new cloud platform enters the ‘Initiating a Project’ process, the Project Manager must establish a tool to maintain these records. Which management product is used to capture and maintain information on these uncertainties and their planned countermeasures?
Correct
Correct: The Risk Register is the specific PRINCE2 management product designed to provide a record of all identified risks (uncertainties) relating to the project. It includes information such as the risk description, the probability of occurrence, the potential impact on objectives, and the chosen risk response actions, which directly addresses the regulatory requirement for tracking uncertainties in a business continuity context.
Incorrect: The Issue Register is incorrect because it is used to capture and maintain information on formal issues, which are events that have already happened (requests for change, off-specifications, or problems). The Quality Register is incorrect as it is used to summarize planned and completed quality activities, such as tests and inspections. The Daily Log is incorrect because it is used by the Project Manager to record informal issues or notes that do not require formal management, rather than the structured tracking of project-wide risks and their estimations.
Takeaway: The Risk Register is the central management product for documenting, assessing, and managing all project uncertainties throughout the PRINCE2 project lifecycle.
Incorrect
Correct: The Risk Register is the specific PRINCE2 management product designed to provide a record of all identified risks (uncertainties) relating to the project. It includes information such as the risk description, the probability of occurrence, the potential impact on objectives, and the chosen risk response actions, which directly addresses the regulatory requirement for tracking uncertainties in a business continuity context.
Incorrect: The Issue Register is incorrect because it is used to capture and maintain information on formal issues, which are events that have already happened (requests for change, off-specifications, or problems). The Quality Register is incorrect as it is used to summarize planned and completed quality activities, such as tests and inspections. The Daily Log is incorrect because it is used by the Project Manager to record informal issues or notes that do not require formal management, rather than the structured tracking of project-wide risks and their estimations.
Takeaway: The Risk Register is the central management product for documenting, assessing, and managing all project uncertainties throughout the PRINCE2 project lifecycle.
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Question 4 of 10
4. Question
A transaction monitoring alert at a wealth manager has triggered regarding Handling issues and risks during business continuity. The alert details show that a critical third-party service provider has increased their annual subscription fees by 20%, which will cause the project to exceed its allocated cost tolerance. According to PRINCE2, what is the first action the Project Manager should take to address this issue while adhering to the ‘Manage by Exception’ principle?
Correct
Correct: According to the PRINCE2 principle of ‘Manage by Exception’, when a project is forecast to exceed its agreed tolerances (such as cost), it is no longer within the Project Manager’s control. The Project Manager must first document the situation (typically in an Issue Report) and analyze its impact on the project’s objectives and the Business Case. This ensures that the Project Board has the necessary information to decide whether the project remains viable and how to proceed.
Incorrect
Correct: According to the PRINCE2 principle of ‘Manage by Exception’, when a project is forecast to exceed its agreed tolerances (such as cost), it is no longer within the Project Manager’s control. The Project Manager must first document the situation (typically in an Issue Report) and analyze its impact on the project’s objectives and the Business Case. This ensures that the Project Board has the necessary information to decide whether the project remains viable and how to proceed.
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Question 5 of 10
5. Question
You have recently joined a listed company as internal auditor. Your first major assignment involves Practical examples of tailoring during onboarding, and a regulator information request indicates that the current project management framework is too rigid for low-risk, high-frequency maintenance tasks. While auditing a minor software patch project scheduled for a 14-day window, you observe several modifications to the standard PRINCE2 methodology. Which of these modifications is a correct application of the tailoring principle?
Correct
Correct: Tailoring allows for management products to be combined, split, or formatted differently to suit the project’s scale and complexity. In a small, low-risk project, merging the Project Brief and the Project Initiation Documentation (PID) is a standard practice to reduce administrative burden while still ensuring that the project’s objectives and plan are documented and approved.
Incorrect: Discontinuing the Lessons Log is incorrect because ‘Learn from Experience’ is a core PRINCE2 principle that cannot be tailored away. Assigning the Executive or Senior User roles to the Project Manager is incorrect because it violates the ‘Defined Roles and Responsibilities’ principle, as the Project Manager cannot be their own supervisor or represent the user’s interests independently. Omitting the ‘Closing a Project’ process is incorrect because tailoring involves adapting how a process is performed, not skipping it entirely; every project requires a formal closure to ensure products are accepted and the project is decommissioned.
Takeaway: Tailoring involves adapting the application of PRINCE2 themes, processes, and products to the project’s context without abandoning the underlying principles.
Incorrect
Correct: Tailoring allows for management products to be combined, split, or formatted differently to suit the project’s scale and complexity. In a small, low-risk project, merging the Project Brief and the Project Initiation Documentation (PID) is a standard practice to reduce administrative burden while still ensuring that the project’s objectives and plan are documented and approved.
Incorrect: Discontinuing the Lessons Log is incorrect because ‘Learn from Experience’ is a core PRINCE2 principle that cannot be tailored away. Assigning the Executive or Senior User roles to the Project Manager is incorrect because it violates the ‘Defined Roles and Responsibilities’ principle, as the Project Manager cannot be their own supervisor or represent the user’s interests independently. Omitting the ‘Closing a Project’ process is incorrect because tailoring involves adapting how a process is performed, not skipping it entirely; every project requires a formal closure to ensure products are accepted and the project is decommissioned.
Takeaway: Tailoring involves adapting the application of PRINCE2 themes, processes, and products to the project’s context without abandoning the underlying principles.
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Question 6 of 10
6. Question
Which description best captures the essence of Accepting a work package for PRINCE2 Foundation? Within the Managing Product Delivery process, a Team Manager is assigned a set of tasks by the Project Manager to develop a specific product. To ensure the project remains on track and the team is not over-committed, a formal interaction occurs to transition the responsibility for the specific products and ensure all parameters are feasible.
Correct
Correct: In the PRINCE2 Managing Product Delivery process, the activity of Accepting a Work Package is a collaborative agreement between the Project Manager and the Team Manager. The Team Manager must ensure that the work is clearly defined, the constraints (such as time and cost) are realistic, and the quality expectations are documented. This ensures that the Team Manager can formally commit to delivering the products as specified.
Incorrect: The Project Board does not review or approve individual Work Packages; their role is at the Directing a Project level, focusing on Stage boundaries and project-wide decisions. While a Team Plan is often created during this process, the Project Manager does not typically verify granular resource allocation, as that is the Team Manager’s responsibility. Administrative updates to registers and notifying Project Assurance are secondary tasks that occur during the execution of the work, rather than defining the essence of the acceptance activity itself.
Takeaway: Accepting a Work Package is the formal mechanism for the Team Manager to confirm they understand the requirements and can commit to the delivery within the agreed constraints and quality standards.
Incorrect
Correct: In the PRINCE2 Managing Product Delivery process, the activity of Accepting a Work Package is a collaborative agreement between the Project Manager and the Team Manager. The Team Manager must ensure that the work is clearly defined, the constraints (such as time and cost) are realistic, and the quality expectations are documented. This ensures that the Team Manager can formally commit to delivering the products as specified.
Incorrect: The Project Board does not review or approve individual Work Packages; their role is at the Directing a Project level, focusing on Stage boundaries and project-wide decisions. While a Team Plan is often created during this process, the Project Manager does not typically verify granular resource allocation, as that is the Team Manager’s responsibility. Administrative updates to registers and notifying Project Assurance are secondary tasks that occur during the execution of the work, rather than defining the essence of the acceptance activity itself.
Takeaway: Accepting a Work Package is the formal mechanism for the Team Manager to confirm they understand the requirements and can commit to the delivery within the agreed constraints and quality standards.
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Question 7 of 10
7. Question
A stakeholder message lands in your inbox: A team is about to make a decision about Product Description as part of data protection at a wealth manager, and the message indicates that there is a lack of clarity on how the ‘Client Privacy Notice’ will be assessed for accuracy. The Project Manager must define the product’s characteristics within the next 24 hours to avoid a delay in the ‘Initiating a Project’ process. To adhere to the PRINCE2 principle of ‘Focus on Products’, which information must be included in the Product Description to ensure the product is fit for purpose?
Correct
Correct: According to PRINCE2, a Product Description is used to define the product’s purpose, composition, derivation, and quality requirements. Specifically, it must include quality criteria (the standards the product must meet) and quality methods (the techniques used to verify those standards). This ensures that the product is fit for purpose and supports the ‘Focus on Products’ principle.
Incorrect
Correct: According to PRINCE2, a Product Description is used to define the product’s purpose, composition, derivation, and quality requirements. Specifically, it must include quality criteria (the standards the product must meet) and quality methods (the techniques used to verify those standards). This ensures that the product is fit for purpose and supports the ‘Focus on Products’ principle.
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Question 8 of 10
8. Question
A whistleblower report received by a private bank alleges issues with Managing a Stage Boundary (SB) Process Detailed Breakdown during third-party risk. The allegation claims that during the transition between the development and deployment stages of a core banking upgrade, the Project Manager bypassed critical updates to the project’s justification documents despite a significant increase in third-party licensing fees. As an internal auditor reviewing the project’s compliance with PRINCE2, which specific activity within the Managing a Stage Boundary process should have been performed to ensure the Project Board could make an informed decision regarding the project’s continued viability?
Correct
Correct: In the PRINCE2 Managing a Stage Boundary (SB) process, the ‘Update the Business Case’ activity is mandatory. It requires the Project Manager to revise the Business Case using actual costs and revised forecasts. This ensures the Project Board can confirm the ‘Continued Business Justification’ principle is still met despite the increased third-party costs before they authorize the next stage.
Incorrect: Updating the Project Initiation Documentation is a broader task often associated with the ‘Initiating a Project’ process; while the PID is updated to reflect the current status, the specific check for viability is the Business Case update. Producing a Lessons Report is part of the ‘Report Stage End’ activity, but it focuses on learning from the past rather than assessing future financial viability. Creating a Benefits Management Approach is primarily an ‘Initiating a Project’ activity and does not serve as the primary tool for the Project Board to assess investment justification at a stage boundary.
Takeaway: The ‘Update the Business Case’ activity within the Managing a Stage Boundary process is the primary mechanism for ensuring a project remains viable and justified before moving to the next stage.
Incorrect
Correct: In the PRINCE2 Managing a Stage Boundary (SB) process, the ‘Update the Business Case’ activity is mandatory. It requires the Project Manager to revise the Business Case using actual costs and revised forecasts. This ensures the Project Board can confirm the ‘Continued Business Justification’ principle is still met despite the increased third-party costs before they authorize the next stage.
Incorrect: Updating the Project Initiation Documentation is a broader task often associated with the ‘Initiating a Project’ process; while the PID is updated to reflect the current status, the specific check for viability is the Business Case update. Producing a Lessons Report is part of the ‘Report Stage End’ activity, but it focuses on learning from the past rather than assessing future financial viability. Creating a Benefits Management Approach is primarily an ‘Initiating a Project’ activity and does not serve as the primary tool for the Project Board to assess investment justification at a stage boundary.
Takeaway: The ‘Update the Business Case’ activity within the Managing a Stage Boundary process is the primary mechanism for ensuring a project remains viable and justified before moving to the next stage.
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Question 9 of 10
9. Question
The quality assurance team at an investment firm identified a finding related to Business Case as part of gifts and entertainment. The assessment reveals that a project to automate the approval of high-value corporate hospitality was launched without a formal Benefits Management Approach. Although the project is currently in its third management stage, the Executive has not yet verified if the projected reduction in compliance risk—the primary driver for the project—is still attainable following a change in local regulatory thresholds. In accordance with PRINCE2 principles, how should the Business Case be utilized in this situation to address the audit finding?
Correct
Correct: The PRINCE2 principle of Continued Business Justification mandates that a project must remain justified throughout its life. The Business Case is the primary document used by the Project Board to assess whether the project is still desirable (benefits vs. costs), viable (deliverable), and achievable. When external factors like regulatory changes occur, the Business Case must be updated and reviewed at stage boundaries to ensure the investment is still sound and the benefits are still realizable.
Incorrect: Maintaining the Business Case as a static baseline is incorrect because PRINCE2 requires it to be a living document updated with actual costs and revised forecasts. Technical specifications are found in Product Descriptions and the Project Initiation Documentation, not the Business Case. While Project Assurance monitors the project, the Business Case itself is a justification tool for the Project Board to make investment decisions, not a tool for monitoring the project team’s adherence to internal hospitality controls.
Takeaway: A PRINCE2 Business Case must be a living document that is updated and re-validated at every stage boundary to ensure continued business justification.
Incorrect
Correct: The PRINCE2 principle of Continued Business Justification mandates that a project must remain justified throughout its life. The Business Case is the primary document used by the Project Board to assess whether the project is still desirable (benefits vs. costs), viable (deliverable), and achievable. When external factors like regulatory changes occur, the Business Case must be updated and reviewed at stage boundaries to ensure the investment is still sound and the benefits are still realizable.
Incorrect: Maintaining the Business Case as a static baseline is incorrect because PRINCE2 requires it to be a living document updated with actual costs and revised forecasts. Technical specifications are found in Product Descriptions and the Project Initiation Documentation, not the Business Case. While Project Assurance monitors the project, the Business Case itself is a justification tool for the Project Board to make investment decisions, not a tool for monitoring the project team’s adherence to internal hospitality controls.
Takeaway: A PRINCE2 Business Case must be a living document that is updated and re-validated at every stage boundary to ensure continued business justification.
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Question 10 of 10
10. Question
A client relationship manager at an investment firm seeks guidance on Factors influencing tailoring (project size, complexity, risk, environment) as part of business continuity. They explain that the firm is initiating a minor update to their client reporting system, which is significantly smaller in scale than their previous core banking migration. While the project is low-risk and has a short timeframe of three months, the firm operates in a highly regulated financial sector where data integrity is paramount. Given these conditions, how should the Project Manager approach the tailoring of PRINCE2 for this project?
Correct
Correct: Tailoring is a core PRINCE2 principle that requires the methodology to be adapted to the project’s specific context, including its size, complexity, risk, and environment. In this scenario, the Project Manager must balance the small scale and low risk of the project with the stringent requirements of the regulatory environment. This involves adjusting the level of formality and documentation in the processes and themes while still maintaining the necessary controls required by the financial sector.
Incorrect: The Manage by Stages principle is a mandatory element of PRINCE2 and cannot be eliminated, regardless of project size or risk. Applying the methodology without any tailoring ignores the principle of ‘Tailor to suit the project environment’ and can lead to unnecessary overhead for a small project. While Project Support may provide advice, the responsibility for ensuring the project is appropriately tailored lies with the Project Manager and the Project Board, not solely with a support function.
Takeaway: Tailoring requires adjusting PRINCE2 processes and themes to fit the project’s specific scale and environmental constraints while strictly adhering to all seven PRINCE2 principles.
Incorrect
Correct: Tailoring is a core PRINCE2 principle that requires the methodology to be adapted to the project’s specific context, including its size, complexity, risk, and environment. In this scenario, the Project Manager must balance the small scale and low risk of the project with the stringent requirements of the regulatory environment. This involves adjusting the level of formality and documentation in the processes and themes while still maintaining the necessary controls required by the financial sector.
Incorrect: The Manage by Stages principle is a mandatory element of PRINCE2 and cannot be eliminated, regardless of project size or risk. Applying the methodology without any tailoring ignores the principle of ‘Tailor to suit the project environment’ and can lead to unnecessary overhead for a small project. While Project Support may provide advice, the responsibility for ensuring the project is appropriately tailored lies with the Project Manager and the Project Board, not solely with a support function.
Takeaway: Tailoring requires adjusting PRINCE2 processes and themes to fit the project’s specific scale and environmental constraints while strictly adhering to all seven PRINCE2 principles.