In the context of the PRINCE2 7 'Controlling a Stage' process, the activity 'Escalate issues and risks' is the definitive application of the principle 'manage by exception.' This activity is triggered when the Project Manager forecasts that any of the agreed stage tolerances (time, cost, quality, s…In the context of the PRINCE2 7 'Controlling a Stage' process, the activity 'Escalate issues and risks' is the definitive application of the principle 'manage by exception.' This activity is triggered when the Project Manager forecasts that any of the agreed stage tolerances (time, cost, quality, scope, benefits, or sustainability) are likely to be exceeded.
The process functions as a safety valve for project governance. When an issue arises or a risk materializes that the Project Manager cannot resolve within their delegated authority, they must not exceed their limits. Instead, they must formally alert the Project Board. The Project Manager first analyzes the situation to assess the impact on the stage and project objectives.
The primary output of this activity is the **Exception Report**. This report is critical; it provides the Project Board with a description of the exception, the cause, the consequences for the Business Case, and the available options for the way forward, complete with a recommendation. This ensures the Project Board has sufficient data to make an informed decision.
Once the Exception Report is submitted, the issue effectively moves up to the 'Directing a Project' process. While the Project Manager awaits a decision, they continue to monitor the situation but do not implement significant corrective actions that would violate tolerances. The Project Board will eventually respond, typically by requesting an Exception Plan to replace the current Stage Plan, or by providing other specific directions. This mechanism ensures that senior management remains in control of significant deviations while the Project Manager handles day-to-day delivery.
Escalate Issues and Risks: PRINCE2 Practitioner v7 Guide
What is 'Escalate Issues and Risks'? This is a specific activity within the Controlling a Stage process. In PRINCE2, the Project Manager is given authority to manage a stage within specific boundaries known as tolerances (Time, Cost, Quality, Scope, Benefits, and Risk). When an issue or risk arises that forecasts a breach of these stage tolerances, the Project Manager no longer has the authority to manage the situation and must escalate it to the Project Board.
Why is it Important? This activity is fundamental to the principle of Manage by Exception. It ensures that: 1. The Project Manager does not exceed their delegated authority. 2. The Project Board is alerted early to significant deviations from the plan. 3. Decisions regarding significant changes or resources are made by the appropriate decision-makers (the Project Board).
How it Works The process generally follows these steps: 1. Analysis: The Project Manager analyzes a new issue or risk and determines that stage tolerances will be exceeded. 2. Preparation: The Project Manager creates an Exception Report. This report outlines the cause of the deviation, the consequences, and the available options for the Project Board to consider. 3. Escalation: The Exception Report is sent to the Project Board. 4. Wait: The Project Manager waits for a decision/direction from the Project Board (often resulting in a request for an Exception Plan).
How to Answer Questions on Escalate Issues and Risks When facing Practitioner scenarios regarding this activity, look for triggers indicating that a problem has moved beyond the Project Manager's control.
Exam Tips: Answering Questions on Escalate Issues and Risks
Forecast vs. Reality: You do not need to wait for the tolerance to be breached. You escalate as soon as it is forecasted that tolerances will be exceeded.
The Output: The primary output of this activity is the Exception Report. If a question asks what document to create when a stage is predicted to go over budget, the answer is an Exception Report (not just an Issue Report).
The Decision: Remember that in this activity, the Project Manager is asking for advice/direction. They are not implementing a solution yet. If an option suggests 'Implement the corrective action immediately' for a tolerance breach, it is incorrect.
Project vs. Stage: Ensure you distinguish between Stage Tolerance (managed by PM, escalated to Board) and Project Tolerance (managed by Board, escalated to Corporate/Programme). This activity specifically deals with the Project Manager escalating to the Project Board.