PRINCE2F PRINCE2 Processes Practice Question
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?
⚠ Common exam trap
Test-takers frequently 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.
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
✓
Advise the project board that the business case is no longer viable and recommend project closure.
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.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Continue developing the PID as planned and submit it to the project board.
Why it's wrong here
Continuing wastes effort on a PID whose business case has already failed, since the viability of the business case underpins the whole document. It tempts because PID development normally proceeds uninterrupted once the brief is approved. Escalating the changed business case to the project board is required, as they alone can authorise closure or re-scoping.
- ✗
Make the decision to close the project yourself and inform the team.
Why it's wrong here
Closing the project is a board decision, not the project manager's; the business case sits under the board's continued viability remit, and the project manager only escalates via an exception report. It tempts because a project manager does close a project at the Closing a Project process, but only once the board has authorised that closure.
- ✓
Advise the project board that the business case is no longer viable and recommend project closure.
Why this is correct
When the business case is no longer viable during Initiating a Project, the project manager must escalate to the project board, which owns the business case and decides whether to continue. Recommending closure lets the board make an informed continuation or termination decision.
- ✗
Request additional time to find alternative justifications for the project.
Why it's wrong here
Requesting extra time to manufacture alternative justifications contradicts the business case's viability test: if benefits no longer outweigh costs and risks, the project should not proceed. It is tempting because refining the business case is legitimate during Initiating a Project, but that applies when assumptions need validating, not when market conditions have already invalidated the justification.
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