Re-Registration - Prince2 Exam: Escalation for Exceeded Benefit Tolerance

Escalation for Exceeded Benefit Tolerance

Question

If a project's benefit tolerance is forecast to be exceeded, to whom should this be escalated to for a decision?

Answers

Explanations

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A. B. C. D.

C.

In PRINCE2 methodology, the concept of benefit tolerance refers to the acceptable deviation in expected benefits for a project. It is the maximum amount by which the project's outcome may vary from the expected benefits before it becomes unacceptable.

If a project's benefit tolerance is forecasted to be exceeded, it means that the project's outcome is not delivering the expected benefits. In such a situation, it is essential to escalate the matter to the appropriate authority to make a decision on how to proceed further.

The answer to this question is option B - Executive. The Executive is the senior-level stakeholder responsible for the overall success of the project, including the realization of expected benefits. The Executive has the authority to make strategic decisions and provide guidance on how to proceed with the project.

In PRINCE2, it is the responsibility of the Project Manager to inform the Executive if the project's benefit tolerance is forecasted to be exceeded. The Project Manager should provide the Executive with relevant information, including the reasons for the deviation, the potential impact on the project, and any possible solutions to mitigate the issue.

The Executive will then make a decision on whether to continue with the project or take corrective action. The corrective action could include revising the project's objectives, renegotiating the project's scope, or adjusting the project's tolerances.

Options A, C, and D are incorrect as they are not the appropriate authority to escalate the matter of exceeding the benefit tolerance. The Senior User is responsible for ensuring that the project's outputs meet the needs of the end-users. Corporate/program management is responsible for providing strategic direction to the organization's projects and programs. The Senior Supplier is responsible for delivering the required products or services.