The issues which are not required to be escalated to the Project Board, or in other words the informal issues are documented in the Daily log. The issues which are formal in nature and needs to be escalated to the Project Board for decision should be documented in the Issue Register. Issue reports are only created for the issues which are formal in nature.
Request for change is that type of issue in which a proposal to make a change to the baseline is made. An example of request for change is as follows: User agreed for a construction of a stadium with a capacity of 20,000 but now would like to have a stadium with capacity of 25,000. This is an example of request for change as the proposal is to change the baseline aspect.
Anything which is promised or agreed upon that it will be provided by the project but is not provided or the forecast is that it will not be provided is referred to as an off-specification. An example is as follows: user and supplier agree that a stadium is to be constructed with a retractable roof. After a period the supplier now advises that they cannot construct the retractable roof over the stadium. This is an example of off-specification.
Any external factor that is going to affect the project and needs to be resolved either by the Project Manager or needs to be escalated to the Project Board for resolution. An example of a problem/concern would be when the supplier who is assigned to construct the stadium goes out of business and files for bankruptcy.
The Issue Report created for formal issues will not only document the description of the issue, but also the impact assessment and recommendations for resolution of the issue.
PRINCE2: Types of Issues