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Project Management & Agile · Foundational

Manage by Exception

PRINCE2 principle of setting tolerances for each objective and escalating only when tolerances are forecast to be exceeded.

Definition

Delegation of authority is defined by tolerances at project, stage, and work package levels, enabling efficient use of senior management time.

Example

The PM handles a 3% cost overrun but escalates a forecast 15% overrun via an exception report.

Exam tip

Escalate only when tolerance is forecast to be exceeded.

Related terms