PRINCE2F Practice Question: Overview of PRINCE2 and the project environment
A project manager is assigned to a new project. The project's business case has been approved, and the project board has authorized the initiation stage. According to PRINCE2, what is the first step the project manager should take?
⚠ Common exam trap
Many exam-takers confuse the order of activities in the Initiating a Project process, mistakenly thinking that updating the Risk Register or reviewing the Business Case should come first, when PRINCE2 explicitly requires the Project Plan to be created as the initial step after authorization.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Create the Project Plan
In PRINCE2, once the business case is approved and the initiation stage is authorized, the project manager's first step is to create the Project Plan. This is because the Project Plan provides the detailed schedule, costs, and resource allocations needed to manage the initiation stage effectively, and it is a mandatory management product for the Initiating a Project process. Without the Project Plan, the project manager cannot proceed with other activities like updating the Risk Register or reviewing the Business Case in a structured way.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Update the Risk Register
Why it's wrong here
The Risk Register is created during the initiation stage but not necessarily as the first step.
- ✗
Appoint the project board
Why it's wrong here
The project board is appointed before the project is authorized.
- ✗
Review the Business Case
Why it's wrong here
The Business Case is already approved before initiation.
- ✓
Create the Project Plan
Why this is correct
The Project Plan is the first plan to be created in the initiation stage.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This PRINCE2F practice question is part of Courseiva's free PeopleCert certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PRINCE2F exam.