PRINCE2 – Foundation Exam Exam

Which item is essential for the Project Board in deciding whether to initiate the project?

1. Risk Register

2. Project Approach

3. Project Brief

4. Business Justification

The correct answer is: Business Justification

The Business Justification is essential for the Project Board in deciding whether to initiate a project because it outlines the rationale for the project, including the expected benefits, costs, risks, and alignment with organizational strategy. It serves as the foundational document that helps the Project Board assess whether the project is worth pursuing and if it aligns with the company's objectives and goals. The Business Justification provides crucial information that allows the board to evaluate not only the potential return on investment but also the project's feasibility and overall value to the organization. In essence, it answers the critical question of "why" the project should proceed. While the other documents listed, such as the Project Brief and Project Approach, provide important context and details about the project, they do not encapsulate the fundamental rationale for the project's initiation as effectively as the Business Justification. The Risk Register can inform the board about potential issues, but it primarily focuses on the risks rather than the project's justification itself.