In Stage 2, if an exception applies, which statement about the PSE demo is correct?

• A. The PSE demo is optional in Stage 2 if an exception applies.
• B. The PSE demo is mandatory in Stage 2 if an exception applies.
• C. The PSE demo is optional in Stage 2 and is still encouraged even if an exception applies.
• D. The PSE demo is never required in Stage 2.

Answer: (C)

Exceptions in Stage 2 create flexibility in requirements, but demonstrations still matter. When an exception applies, the PSE demo isn’t mandated, but it remains advisable to perform it. Doing the demo shows how you would handle the exception in practice, helps evaluators see that risk controls and processes are still in place, and provides concrete evidence of preparedness despite the exception.

Why the other angles don’t fit: making the demo mandatory would remove the flexibility that an exception is supposed to provide, which isn’t consistent with having an exception. Claiming it’s never required ignores the value of demonstration as a best practice even when not strictly required. Saying it’s merely optional with no encouragement downplays the benefit of using the opportunity to illustrate your approach and maintain confidence in controls.