PRINCE2F PRINCE2 Practices Practice Question
Which of the following is NOT a component of the Business Case?
⚠ Common exam trap
It's easy for candidates to confuse the 'Major Risks' section within the Business Case (which summarizes key risks) with the separate 'Risk Register' management product, leading candidates to incorrectly think the Risk Register is part of the Business Case.
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
✓
Risk Register
The Business Case in PRINCE2 is a document that justifies the project's initiation and continued viability. It contains components such as Expected Benefits, Investment Appraisal, and Major Risks. The Risk Register is a separate management product used to record and track identified risks, not a component of the Business Case itself.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Expected benefits
Why it's wrong here
Expected benefits are a required Business Case component, covering the measurable gains the project delivers. It is tempting to select because benefits must be quantified and justified, but the question asks which item is NOT a component, so a genuine component cannot be the answer.
- ✓
Risk Register
Why this is correct
The Risk Register documents identified threats, their probability, impact and countermeasures, and is maintained separately from the Business Case. PRINCE2 Business Case components cover benefits, costs, risks, timescales and investment appraisal, so the Risk Register is not itself a constituent part.
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Investment appraisal
Why it's wrong here
Investment appraisal is a required Business Case component, comparing options and justifying the chosen approach. It is tempting because appraisal techniques such as payback and cost-benefit analysis are central to the Business Case, but the question asks which item is NOT a component.
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Major risks
Why it's wrong here
Major risks are a component of the Business Case in PRINCE2, so listing them as not a component is wrong. The question's phrasing tempts candidates because risks appear in many management products, yet the Business Case explicitly includes major risks alongside benefits, costs and timescales.
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