You are the project manager for a construction project. The project is in the Initiating a Project process. The project board has approved the project brief, and you are now developing the project initiation documentation (PID). During this process, you identify that the project's business case is no longer viable due to a change in market conditions. What is the most appropriate action?
The project board must be informed to decide on continuation.
Why this answer
In PRINCE2, the project board is responsible for making decisions about project viability, including closure. During the Initiating a Project process, if the business case becomes unviable, the project manager must escalate this to the project board, who then decides whether to close the project. Option C correctly reflects this by advising the board and recommending closure, aligning with the 'continued business justification' principle.
Exam trap
The trap here is that candidates may assume the project manager has the authority to close the project or continue without escalation, but PRINCE2 explicitly reserves closure decisions for the project board to maintain proper governance.
How to eliminate wrong answers
Option A is wrong because continuing to develop the PID despite a non-viable business case violates the PRINCE2 principle of continued business justification; the project should not proceed without a valid business case. Option B is wrong because the project manager does not have the authority to close the project unilaterally; only the project board can authorize closure. Option D is wrong because requesting additional time to find alternative justifications is not the prescribed action; the project manager should escalate the issue to the project board for a decision, not delay the process.