PRINCE2 Practitioner — Question 9

The project is in stage 1. The Portfolio Director for the Louistown is Open for Business (LOB) portfolio sees the LouisShopping Project as a key project in the portfolio. As a result, funding has been approved for the life of the project as part of the Council's 5-year plan. The 5-year plan is unlikely to change over this period, so the Portfolio Director has decided that there is no need to review the project's costs, time and benefits and continued alignment with the Council's strategy at the end of each stage.
Is this an appropriate application of the ‘ensure continued business justification’ principle, and why?

Answer options

• A. Yes, because the funding has been approved for the whole project as part of the Council's 5-year business plan
• B. Yes, because the Portfolio Director should ensure that the project is managed in line with the LOB portfolio-level needs
• C. No, because the project manager should check that costs continue to be less than the benefits at the end of each stage
• D. No, because the project manager should decide whether the business case should be revalidated at the end of a stage

Correct answer: D

Explanation

The correct answer is D because the project manager has the responsibility to assess whether the business case remains valid at the end of each stage. Options A and B incorrectly suggest that approval of funding negates the need for ongoing justification, while option C misinterprets the role of the project manager in the context of business case validation.