Escalating Issues and Risks is a fundamental component of the Progress practice in PRINCE2 7, ensuring that problems beyond a team's authority are communicated to appropriate management levels for resolution. This mechanism maintains project momentum while respecting defined tolerances and authorit…Escalating Issues and Risks is a fundamental component of the Progress practice in PRINCE2 7, ensuring that problems beyond a team's authority are communicated to appropriate management levels for resolution. This mechanism maintains project momentum while respecting defined tolerances and authority levels.<br><br>When a Team Manager identifies an issue or risk that exceeds their delegated tolerance levels, they must escalate it to the Project Manager through an Exception Report or by raising an issue. The Project Manager then assesses whether the matter falls within their own tolerance boundaries. If it does, they can address it using their delegated authority. If the situation exceeds project-level tolerances, the Project Manager must escalate further to the Project Board.<br><br>The escalation process follows the management by exception principle, which is central to PRINCE2. This principle ensures that senior management only becomes involved when necessary, allowing them to focus on strategic decisions rather than day-to-day operational matters. Tolerances are set for time, cost, scope, quality, benefits, and risk, providing clear boundaries for decision-making at each management level.<br><br>Effective escalation requires clear communication of the issue or risk, its potential impact on project objectives, available options for resolution, and recommendations. The Exception Report serves as the formal mechanism for this communication, providing decision-makers with sufficient information to take appropriate action.<br><br>The Project Board may respond to escalations by providing guidance, approving exception plans, adjusting tolerances, or in severe cases, prematurely closing the project. This structured approach ensures that significant threats to project success receive appropriate attention and resources.<br><br>Timely escalation prevents minor issues from becoming major problems and demonstrates good governance. It creates transparency across all management levels and supports the PRINCE2 principle of defined roles and responsibilities throughout the project lifecycle.
Escalating Issues and Risks in PRINCE2 v7
Why is Escalating Issues and Risks Important?
Escalating issues and risks is a fundamental aspect of effective project governance in PRINCE2. It ensures that problems beyond a team's authority or tolerance levels are communicated to the appropriate decision-makers who have the power to resolve them. This mechanism prevents project delays, maintains accountability, and protects the project from uncontrolled deviations that could threaten its success.
What is Escalating Issues and Risks?
In PRINCE2, escalation refers to the formal process of raising issues, risks, or exception situations to a higher management level when they exceed defined tolerances or cannot be resolved at the current level. Issues are problems that have already occurred, while risks are potential future events that could impact the project positively or negatively.
The escalation path typically follows this hierarchy: - Team Manager escalates to Project Manager - Project Manager escalates to Project Board - Project Board escalates to Corporate or Programme Management
How Does Escalation Work?
Tolerance and Triggers: Each management level operates within defined tolerances for time, cost, scope, quality, benefits, and risk. When a forecast shows these tolerances may be exceeded, escalation is triggered.
Exception Reports: When tolerances are forecast to be exceeded, the Project Manager creates an Exception Report for the Project Board. This report describes the exception, its cause, options for recovery, and recommendations.
Issue and Risk Registers: These registers track all identified issues and risks. Items requiring escalation are flagged and communicated through highlight reports or exception reports.
The Escalation Process: 1. Identify that a situation exceeds tolerance or authority 2. Document the issue or risk with full details 3. Assess impact and develop options 4. Communicate to the appropriate level using correct reports 5. Await decision and implement approved actions
Key Principles of Escalation:
- Management by Exception: Escalation supports this principle by ensuring senior management only becomes involved when necessary - Defined Roles and Responsibilities: Clear escalation paths require well-defined roles - Timely Communication: Early warning enables better decision-making
Exam Tips: Answering Questions on Escalating Issues and Risks
1. Know the Escalation Hierarchy: Remember that Team Managers report to Project Managers, who report to the Project Board. Questions often test whether you understand who escalates to whom.
2. Understand Exception Reports vs Highlight Reports: Highlight Reports are regular progress updates, while Exception Reports are used when tolerances are forecast to be exceeded. Exam questions frequently test this distinction.
3. Focus on Forecast Deviations: Escalation occurs when tolerances are forecast to be exceeded, not after they have been exceeded. This proactive approach is essential to understand.
4. Remember the Role of the Project Board: The Project Board makes decisions on exceptions and can request an Exception Plan. They are the escalation point for the Project Manager.
5. Link to Management by Exception: Many questions connect escalation to this PRINCE2 principle. Understand that escalation enables senior managers to delegate day-to-day control while retaining oversight.
6. Consider Tolerance Types: Questions may specify which tolerance type is being exceeded. Be familiar with all six: time, cost, scope, quality, benefits, and risk.
7. Read Questions Carefully: Look for keywords like 'tolerance exceeded,' 'authority,' 'exception,' or 'escalate' to identify what the question is testing.
8. Elimination Strategy: When unsure, eliminate options that suggest handling matters beyond one's authority level or those that bypass the proper escalation chain.