Exceptions in PRINCE2 projects, as in all projects need rapid but careful investigation. For example, there’s a big difference between overspending in a stage and early spending. PRINCE2 provides the method for dealing with exceptional circumstances.
Key: Find the underlying reasons, not just the superficial cause.
Decision at the end: Carry on (perhaps on a new plan) or stop the project?
Investigate rapidly and think through options
Report to the Project Board and get a decision on the way forward
Re-plan the rest of the stage if needed
Get approval to continue on the basis of the new plan
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Source:http://www.dummies.com/how-to/content/exception-plans-with-prince2-project-management.html
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