Glossary

PRINCE2 Foundation Glossary

By The Exam Atlas Editorial Team · Verified 2026-05-29

Plain-English definitions of the PRINCE2 terms for Foundation study. Simplified for learning; PeopleCert’s materials are authoritative.

TermDefinition
PRINCE2A structured, process-based project management method.
PrincipleA guiding obligation every PRINCE2 project follows.
Theme / practiceAn aspect managed continuously (e.g., risk, quality).
ProcessA set of activities for a part of the project lifecycle.
Business caseThe justification for the project; must remain valid.
Project boardThe group that directs the project.
Project managerThe person who manages the project day to day.
StageA management section of the project.
ToleranceThe permitted deviation before escalation is needed.
Manage by exceptionEscalate only when tolerances are forecast to be exceeded.
ProductA deliverable or output of the project.
Work packageThe work assigned to a team to produce products.
PIDProject Initiation Documentation — the project’s baseline.
QualityMeeting the agreed requirements of a product.
RiskAn uncertain event that could affect objectives.
IssueA relevant event that has happened and needs handling.
TailoringAdapting PRINCE2 to the project’s context.
Highlight reportRegular progress report to the project board.
Exception reportA report produced when a tolerance is forecast to be breached.
Lessons logA record of lessons to learn from and apply.

Sources