Practice Free PRINCE2-Agile-Foundation PRINCE2 Agile Foundation (Version 2) Exam Exam Questions Answers With Explanation

The concept of “being Agile” rather than merely “doing Agile” is a central theme in Agile Foundation guidance. “Being Agile” refers to adopting the Agile mindset, values, and principles as a way of thinking and behaving, rather than simply applying a set of tools, ceremonies, or techniques. This mindset emphasizes adaptability, collaboration, continuous learning, and responsiveness to change, which is best represented by option B.

Agile foundations clearly distinguish mindset from mechanics. While timelines, documentation, and techniques have their place, they are secondary to people, interactions, and the ability to respond effectively to changing circumstances. Adaptability means welcoming change, even late in development, when it improves value for customers and stakeholders. Collaboration emphasizes close, ongoing cooperation between cross-functional team members, business representatives, and customers, ensuring shared understanding and faster decision-making.

Option A focuses on strict timelines and task completion, which aligns more closely with traditional predictive or plan-driven approaches. Agile recognizes that rigid timelines can reduce flexibility and discourage learning. Option C emphasizes document-driven processes, which contradict the Agile value of prioritizing working solutions over comprehensive documentation. Documentation is useful, but it should support value delivery, not dominate it. Option D highlights Agile techniques for efficiency, which reflects “doing Agile” rather than “being Agile.” Techniques such as stand-ups, boards, or retrospectives only create value when guided by an Agile mindset.

In Agile foundations, “being Agile” enables teams to continuously inspect and adapt their ways of working, improve relationships, and deliver meaningful outcomes. By focusing on adaptability and collaboration, organizations create environments where teams can respond effectively to uncertainty, learn from feedback, and consistently deliver value, which is the true intent of Agile.

The Manage by Exception principle empowers individuals and teams by delegating decision-making within defined tolerances. It ensures governance is efficient by allowing project managers and teams to operate independently within agreed limits, escalating only when exceptions occur. This approach promotes self-management, autonomy, and accountability, which are key to agility, while maintaining control through governance boundaries.

The other principles focus on different aspects: business justification relates to ongoing viability, tailoring adapts the method, and focusing on products emphasizes deliverables but do not specifically address empowerment through governance.

Agile Foundation guidance explains that the purpose of the agile enablement workshop is to identify, assess, and plan for risks associated with Agile adoption, making option C the correct answer. This workshop is a structured activity designed to help organizations and project teams understand how well Agile ways of working fit their specific context and what challenges may arise when adopting Agile approaches.

The agile enablement workshop focuses on readiness rather than delivery execution. It examines factors such as organizational culture, governance expectations, stakeholder engagement, team capability, leadership support, and external constraints. By discussing these areas openly, participants can identify potential barriers to Agile adoption, assess their impact, and agree on actions to reduce or manage those risks. This proactive approach supports informed decision-making and avoids unrealistic expectations about Agile.

Option A, risks associated with project delivery, relates more to traditional project risk management practices. Option B, team delivery risks, focuses narrowly on team-level execution issues rather than adoption. Option D, enterprise agility risks, applies at a broader organizational transformation level and goes beyond the typical scope of an agile enablement workshop, which is usually project- or initiative-focused.

Agile Foundation documents emphasize that Agile adoption is not risk-free and should be approached thoughtfully. The agile enablement workshop helps ensure that Agile is tailored appropriately rather than applied mechanically. It supports alignment between Agile teams and governance structures, clarifies where flexibility is possible, and highlights where controls are required. By identifying and planning for adoption risks early, organizations increase the likelihood of successful Agile implementation while preserving the core values of adaptability, collaboration, and value-driven delivery.

The Progress practice in PRINCE2 Agile is focused on providing a forecast of the project's viability by monitoring actual progress against plans and predicting future performance. It ensures that decisions can be made based on current status and trends, enabling timely interventions if necessary.

This practice involves collecting progress data, reviewing milestones, updating forecasts, and communicating status to stakeholders. Forecasting viability includes assessing whether the project remains aligned with business justification and expected benefits.

While opportunities and threats are part of risk management (B), user needs belong to requirements management (C), and accountability is a broader governance concern (D), progress specifically deals with tracking and forecasting delivery status.

The practice combines traditional PRINCE2 stage controls with agile iterative reviews, providing an integrated view of progress.

The Agilometer is a diagnostic tool used within PRINCE2 Agile to assess the agility maturity and identify risks associated with adopting or operating in an iterative and agile environment. It helps teams and organizations evaluate their current agile capabilities, cultural readiness, and potential challenges that may impact project delivery.

The Agilometer highlights risk areas such as resistance to change, lack of agile skills, unclear roles, or insufficient governance adaptation. By providing a structured assessment, it enables proactive risk management and targeted improvements to reduce uncertainties inherent in iterative approaches.

Other artifacts like the project backlog (A) track requirements, the risk management approach (C) defines the method of managing risks but does not specifically identify iterative risks, and the Definition of Done (D) clarifies completion criteria rather than risks.

The Agilometer supports continuous improvement and risk mitigation aligned with PRINCE2’s risk and quality practices, ensuring agile projects remain viable and controlled.

A key criterion for the Definition of Ready is that acceptance criteria are measurable. This ensures that work items are clearly understood, well-defined, and have objective criteria to confirm when they are complete. Measurable acceptance criteria reduce ambiguity and support efficient development and quality assurance.

Other options describe completion or handover stages, which are more relevant to the Definition of Done, not Ready.

The assess step involves evaluating the probability and impact of identified risks to determine their severity and prioritize them for management. This step is crucial for effective risk control and helps allocate resources appropriately.

Planning relates to defining how to manage risks, identification involves discovering risks, and implementation concerns applying risk responses.

Speaking the language of leadership is essential for securing leadership buy-in when scaling agile. This means framing agile benefits, risks, and requirements in terms that resonate with leaders—such as business value, risk management, and return on investment—rather than just agile jargon.

While empowering teams (D) and emphasizing agile practices (C) are important, without leadership understanding and support, agile scaling is unlikely to succeed. Ensuring all decisions come from leadership (B) contradicts agile principles of decentralization and empowerment.

Effective communication tailored to leadership priorities fosters alignment and commitment.

The principle that establishes governance by delegating responsibilities and setting tolerances is manage by exception, making option C the correct answer. Agile Foundation guidance, aligned with PRINCE2 and PRINCE2 Agile principles, explains that effective governance does not require constant oversight or micromanagement. Instead, it relies on clearly defined roles, delegated authority, and agreed tolerances within which teams are empowered to operate.

Manage by exception works by setting measurable tolerances for key aspects such as time, cost, scope, quality, risk, and benefits. As long as work remains within these agreed limits, the team or delivery level can proceed independently without escalation. This creates clarity around accountability while allowing teams the autonomy needed to work efficiently and respond to change—an essential aspect of Agile delivery. Escalation only occurs when forecasts indicate that tolerances will be exceeded, ensuring that senior management attention is focused where it adds the most value.

Option A, ensure continued business justification, focuses on confirming that the project remains viable and worthwhile, but it does not define how governance is enacted day to day. Option B, tailor to suit the project, emphasizes adapting methods and controls to the project context rather than establishing governance through delegation. Option D, focus on products, ensures clarity around outputs and acceptance criteria but does not address governance or escalation mechanisms.

Agile Foundation documents highlight that manage by exception supports agility by balancing control with empowerment. Teams gain the freedom to self-manage and deliver iteratively, while leadership retains confidence that risks are controlled and objectives are protected. This principle reduces unnecessary reporting, speeds up decision-making, and supports trust between governance levels. By clearly delegating responsibilities and defining tolerances, manage by exception provides a practical and effective governance model compatible with Agile ways of working.

The Recommend step in issue management involves analyzing the issue and evaluating possible options to resolve it. At this stage, the project team or responsible individuals identify potential solutions, weigh their pros and cons, and recommend the best course of action to decision-makers.

Capture is the initial identification and recording of the issue, Decide involves making the final decision on the recommended solution, and Implement is the execution of the chosen resolution. Evaluating options thoroughly during the Recommend phase helps ensure informed decision-making and effective issue resolution.

This structured approach aligns with PRINCE2’s focus on proactive issue management, maintaining control and reducing risk impacts.

Agile Foundation guidance explains that a “fail-fast-learn-fast” environment is best supported by the principle tailor to suit the project, making option D the correct answer. This principle emphasizes adapting methods, controls, and ways of working to match the project’s context, level of uncertainty, and risk. In Agile and PRINCE2 Agile environments, tailoring enables teams to experiment, learn quickly, and adjust without being constrained by unnecessary rules or heavy governance.

A fail-fast-learn-fast culture depends on rapid feedback, short learning cycles, and the freedom to adapt approaches when something does not work as expected. The tailoring principle allows teams to reduce upfront rigidity, simplify documentation, shorten feedback loops, and choose Agile techniques that encourage experimentation. This flexibility makes it easier to test ideas early, identify failures quickly, and apply learning immediately, which is at the heart of Agile thinking.

Option A, manage by stages, supports control and review at defined points, but it does not specifically encourage rapid experimentation or learning. Option B, manage by exception, focuses on governance through tolerances and escalation, which supports empowerment but is not the primary driver of a fail-fast culture. Option C, defining roles, responsibilities, and relationships, ensures clarity and accountability but does not directly promote rapid learning from failure.

Agile Foundation documents stress that tailoring is essential when working in complex and uncertain environments. By tailoring governance and delivery approaches, teams avoid over-engineering solutions and can respond quickly to new information. This principle supports an environment where small failures are acceptable, learning is valued, and continuous improvement is embedded into everyday work. Tailor to suit the project enables Agile teams to balance control with flexibility, making it a key enabler of a fail-fast-learn-fast culture that drives innovation and value delivery.

The Release Planning Workshop is the forum where planning for the next stage occurs in PRINCE2 Agile. This workshop brings together the project management team and delivery teams to plan the scope, schedule, and resources for the upcoming release or stage. It helps align business priorities with delivery capacity and supports incremental and iterative delivery approaches.

The Team Planning Workshop focuses on more detailed planning at the team level within the release, the Team Retrospective Workshop is dedicated to reflecting on performance and improving processes, and the Progress Review Workshop is for reviewing progress against the plan rather than planning future work.

The Managing Product Delivery process includes agreeing on and controlling the requirements for the delivery of specialist products. This process ensures that team managers understand the scope and quality expectations before work begins and that delivery aligns with the project plan.

Initiating a project and starting up a project establish overall direction but do not handle detailed delivery requirements. Managing a stage boundary reviews progress and plans the next stage.

This process maintains clarity and accountability for delivery within PRINCE2’s framework, facilitating effective control over specialist products.

Within Agile Foundation guidance and PRINCE2 Agile alignment, the Definition of Done (DoD) plays a critical role in supporting an iterative approach to delivery, making option C the correct answer. PRINCE2 Agile combines the governance strengths of PRINCE2 with the flexibility of Agile delivery, and iteration is central to how value is delivered incrementally. The DoD provides a shared and consistent understanding of what it means for work to be complete at the end of each iteration.

The iterative approach in PRINCE2 Agile relies on delivering small, usable increments frequently. The Definition of Done ensures that every increment meets agreed quality standards before it is considered complete. This supports transparency, predictability, and trust, which are essential for iterative delivery. Without a clear DoD, teams risk producing partially finished work that cannot be reviewed, tested, or released, undermining the benefits of iteration.

Option A is incorrect because Agile and PRINCE2 Agile emphasize continuous feedback as a core mechanism for learning and adaptation. Option B, offering predictive insights, is not a defining element of PRINCE2 Agile’s iterative approach; Agile focuses more on empirical feedback than prediction. Option D is also incorrect because frequent testing is encouraged, not reduced, in iterative Agile delivery.

Agile Foundation documents emphasize that the DoD acts as a quality gate that supports incremental progress while maintaining control. It aligns delivery teams and stakeholders on expectations and ensures that each iteration produces a potentially usable output. In PRINCE2 Agile, this alignment allows teams to work autonomously within defined tolerances while still meeting governance and assurance requirements. By clearly defining what “done” means, the DoD strengthens the iterative cycle of build, review, learn, and adapt, which is fundamental to Agile and PRINCE2 Agile working together.

The Project Closure Workshop is the formal forum used to reflect on lessons learned during the project lifecycle. It is held towards the end of the project and provides an opportunity for the project team, stakeholders, and sponsors to review successes, challenges, and areas for improvement.

Capturing lessons learned supports organizational learning, helps avoid repeating mistakes, and improves future projects and agile adoption. This reflective practice aligns with PRINCE2’s focus on continuous improvement and governance requirements.

Other workshops such as team planning (A) focus on upcoming work, agile enablement (B) on agile adoption, and project kickoff (C) on project initiation, none of which prioritize lessons learned reflection.

The project closure workshop is a vital practice to ensure knowledge retention and maturity in both traditional and agile project environments.

Agile Foundation guidance, aligned with PRINCE2 and PRINCE2 Agile, explains that the closing a project process is primarily used to formally accept the project product, making option C the correct answer. This process ensures that the project has delivered what was agreed, that acceptance criteria have been met, and that the project can be closed in a controlled and orderly manner.

The closing a project process confirms that all products have been completed, approved, and handed over to the appropriate operational or business teams. Formal acceptance of the project product is critical because it provides clarity that delivery is complete and that responsibility for the product has transitioned from the project to ongoing operations or use. Agile Foundation documents emphasize that even in Agile environments, clear closure and acceptance are essential to good governance and benefit realization.

Option A, controlling the link between the project manager and the delivery team, relates to the managing product delivery process, not closing a project. Option B, ensuring the project is viable, is the purpose of the continued business justification principle and is reviewed throughout the project lifecycle, not just at closure. Option D, ensuring focus remains on delivering the stage’s products, aligns with the controlling a stage process, which operates while work is still ongoing.

Agile Foundation materials highlight that closing a project is more than an administrative step. It also includes confirming that benefits management responsibilities are handed over, lessons learned are captured, and stakeholders agree that the project objectives have been met. In Agile and PRINCE2 Agile contexts, this formal closure provides confidence to senior management that investment has delivered its intended outcomes.

By formally accepting the project product, the closing a project process ensures clarity, accountability, and a clean transition from project delivery to operational use, reinforcing disciplined governance while remaining compatible with Agile delivery approaches.

Culture refers to the collective attitudes, values, beliefs, and goals shared by a group or organization. It shapes how people behave, make decisions, and interact. In PRINCE2 Agile, understanding and adapting organizational culture is critical for successful agile adoption and delivery.

Leadership (B) influences culture but is distinct, co-creation (C) is a collaborative approach, and management (D) relates to planning and control activities.

A positive, agile-friendly culture fosters openness, trust, and continuous improvement.

Agile Foundation guidance clearly identifies Scrum as an iterative and timeboxed approach to product delivery, making option A the correct answer. Scrum is built around fixed-length iterations called sprints, which are typically one to four weeks long. These timeboxes create a regular cadence for planning, development, review, and improvement, enabling teams to deliver usable increments of a product frequently and predictably.

Scrum emphasizes iterative delivery by breaking complex work into smaller, manageable pieces that can be completed within a sprint. Each sprint begins with planning, where the team selects work from the product backlog, and ends with a review and retrospective. This structure supports frequent inspection of both the product and the team’s way of working, allowing for continuous adaptation based on feedback and learning. Agile Foundation documents highlight that timeboxing is a key mechanism in Scrum, helping teams focus, limit work in progress, and reduce risk.

Option B, Kanban, is not timeboxed. Kanban focuses on continuous flow, visualizing work, and limiting work in progress rather than delivering in fixed iterations. Option C, the Agilometer, is an assessment tool used to evaluate suitability and risks of Agile adoption, not a delivery approach. Option D, Lean, is a broader philosophy focused on eliminating waste and optimizing value flow; while it can influence Agile delivery, it is not inherently iterative and timeboxed in the way Scrum is.

Agile Foundation materials stress that Scrum’s iterative and timeboxed nature supports transparency, predictability, and early value delivery. By delivering small increments regularly, teams can gather feedback early, reduce uncertainty, and adapt priorities as needs change. This makes Scrum particularly effective in environments where requirements evolve and learning is essential.