I am currently managing a work package on a large research grant. I am a qualified Prince2 practitioner (although I did the training some time ago and the system is not widely used in my field, so I may be doing it wrong) and had been following the management-by-exception principle, but a few months ago we had an issue with a partner not mentioning an issue until it was in danger of causing us to miss a milestone. I am a complete newcomer to Agile but I have heard of the daily 'scrum' meeting and it sounds like it would be effective at addressing the problems we are having - and I remember our trainer mentioning dire consequences of failing to follow the management-by-exception principle, but crucially not what they were...
What would be the potential pitfalls of adopting a similar process within a Prince2 PM framework? And if they are serious, what would be an alternative to avoid a repeat of the situation above?