Quick Answer
The answer is to create the Project Plan. This is the correct first step in PRINCE2 Initiating a Project because the Project Plan serves as the detailed roadmap for the entire initiation stage, outlining the schedule, costs, and resources required to manage that stage effectively. Without this mandatory management product, the project manager cannot proceed with other activities like updating the Risk Register or refining the Business Case, as the plan provides the baseline for all subsequent planning. On the PRINCE2 Foundation exam, this question tests your understanding of the order of activities within the Initiating a Project process, often appearing as a trick where candidates mistakenly choose "Update the Business Case" or "Create the Risk Register" first. A common memory tip is to remember that you need a plan before you can manage anything else—think "Plan first, then act."
This PRINCE2F practice question tests your understanding of overview of prince2 and the project environment. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
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?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "first"
Why it matters: Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
Update the Risk Register
Why wrong: The Risk Register is created during the initiation stage but not necessarily as the first step.
Appoint the project board
Why wrong: The project board is appointed before the project is authorized.
Review the Business Case
Why wrong: The Business Case is already approved before initiation.
Create the Project Plan
The Project Plan is the first plan to be created in the initiation stage.
Answer choices
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.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
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.
Clue confirmation
The clue word "first" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
The trap here is that candidates often 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.
Detailed technical explanation
The Project Plan in PRINCE2 is a detailed plan that covers the entire project, including the initiation stage, and is created using the product-based planning technique. It includes the project schedule, cost estimates, risk responses, and resource requirements, and it must be approved by the project board before the initiation stage can proceed. In practice, the Project Plan serves as the baseline for monitoring progress and controlling changes throughout the project, making it a critical first deliverable for the project manager.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A practitioner preparing for the PRINCE2F exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Overview of PRINCE2 and the project environment — study guide chapter
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FAQ
Overview of PRINCE2 and the project environment — This question tests Overview of PRINCE2 and the project environment — Read the scenario before looking for a memorised answer..
The correct answer is: 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.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Yes — watch for: "first". Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 11, 2026
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