Escalate Issues and Risks is a critical activity within the Controlling a Stage process in PRINCE2 7. This activity ensures that problems exceeding the Project Manager's authority are brought to the attention of the Project Board for decision-making.
When managing a stage, the Project Manager moni…Escalate Issues and Risks is a critical activity within the Controlling a Stage process in PRINCE2 7. This activity ensures that problems exceeding the Project Manager's authority are brought to the attention of the Project Board for decision-making.
When managing a stage, the Project Manager monitors progress and identifies various issues and risks that may arise. Some of these can be handled within the Project Manager's delegated tolerances, while others require escalation to higher authority levels.
The escalation process involves creating an Exception Report when tolerances are forecast to be exceeded. This report provides the Project Board with essential information about the situation, including the cause of the deviation, available options for recovery, the Project Manager's recommendation, and the impact on the Business Case, risks, and overall project objectives.
Issues that typically require escalation include those that threaten stage or project tolerances for time, cost, scope, quality, benefits, or risk. The Project Manager must assess each issue against their delegated authority and determine whether it falls within their decision-making power.
For risks, escalation occurs when a risk's potential impact exceeds what the Project Manager can manage or when the risk threatens the project's viability. The Project Board needs visibility of significant risks to make informed decisions about project continuation.
The escalation mechanism maintains the management by exception principle central to PRINCE2. It allows senior management to focus on strategic decisions rather than day-to-day management while ensuring they remain informed about significant concerns.
Effective escalation requires clear communication, timely reporting, and well-documented analysis of options. The Project Manager must provide sufficient information for the Project Board to make decisions, potentially resulting in revised stage plans, project changes, or even premature project closure if the situation warrants such action.
Escalate Issues and Risks in PRINCE2 Foundation v7
Why is Escalating Issues and Risks Important?
Escalating issues and risks is a critical activity within the Controlling a Stage process because it ensures that problems beyond the Project Manager's authority are addressed at the appropriate management level. This maintains effective governance, prevents project delays, and ensures that decisions requiring higher authority are made by those with the power to act. Proper escalation protects the project from stagnation when tolerance thresholds are breached or when situations arise that the Project Manager cannot resolve alone.
What is Escalating Issues and Risks?
Escalating issues and risks refers to the formal process of raising matters to the Project Board when they exceed the Project Manager's delegated tolerances or require decisions beyond their authority. This includes:
• Issues - problems, concerns, changes, or off-specifications that cannot be resolved within stage tolerances • Risks - threats or opportunities that could impact project objectives beyond acceptable levels • Exception situations - when forecasts show that tolerances will be exceeded
How Does It Work?
1. Identification: The Project Manager identifies that an issue or risk exceeds their authority or tolerance levels
2. Assessment: The impact and options are analyzed before escalation
3. Exception Report: When tolerances are forecast to be exceeded, the Project Manager prepares an Exception Report for the Project Board
4. Communication: The matter is formally raised to the Project Board through appropriate channels
5. Decision: The Project Board decides on the course of action, which may include requesting an Exception Plan
The Project Manager uses the Issue Register and Risk Register to track items that may require escalation.
Exam Tips: Answering Questions on Escalate Issues and Risks
• Remember that escalation goes to the Project Board, not to team members or external parties
• An Exception Report is the key product created when escalating tolerance breaches
• Understand that the Project Manager must escalate when tolerances are forecast to be exceeded - this is not optional
• Know the difference between issues that can be handled within tolerance and those requiring escalation
• Questions may test whether you understand that escalation is about authority levels and tolerance breaches
• Be aware that escalation is part of the Controlling a Stage process, not other processes
• The Project Board can respond to escalation by providing direction, adjusting tolerances, or requesting an Exception Plan
• Remember that proper escalation demonstrates good governance and management by exception in action