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
Proceeding with a non-viable business case is not appropriate.
- ✗
Make the decision to close the project yourself and inform the team.
Why it's wrong here
Only the project board can authorize project closure.
- ✓
Advise the project board that the business case is no longer viable and recommend project closure.
Why this is correct
The project board must be informed to decide on continuation.
- ✗
Request additional time to find alternative justifications for the project.
Why it's wrong here
The business case is not viable; additional time may not help.
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