PRINCE2 Initiating a Project

Project Management PRINCE2 Planning Governance

Overview

Draft Initiating a Project (IP) documents aligned with PRINCE2. Covers the Project Initiation Documentation (PID), Project Plan, detailed Business Case, Benefits Management Approach, and management approaches for risk, quality, communication, and change control.

Getting Started

Upload the approved Project Brief and any organizational standards or templates to the workspace and activate the PRINCE2 Initiating a Project skill. The agent will help you build the PID, refine the Business Case, and establish all management approaches.

Example Conversation

Below is an example of a typical session creating the Project Initiation Documentation for a data centre migration. The agent structures the PID and elaborates the management approaches.

You: The Board has authorized initiation for our data centre migration project — moving from on-premises to AWS. The Project Brief is in docs/project_brief.md. I need to create the full PID. The project will have 4 stages: initiation, infrastructure setup, application migration, and cutover. Budget is EUR 2.1M, timeline is 14 months.
Agent: I’ve reviewed the Project Brief. I’ll create the PID and its component documents. Let me confirm a few points:
Does your organization have standard templates for the management approaches (risk, quality, communication, change control), or should I draft them from PRINCE2 defaults?
What is the organization’s risk appetite — risk-averse, balanced, or risk-seeking?
How many stakeholder groups need to be covered in the Communication Management Approach?
You: No existing templates — draft from PRINCE2 defaults. Risk appetite is risk-averse (we’re a financial services company, regulated by BaFin). Key stakeholder groups: Board, IT operations, application owners (12 teams), external cloud architect, compliance/audit, and end users (~800 staff).
Agent: I’ve created the full PID with all component documents. Here’s what’s been produced:
PID (pid.md) — master document referencing all components, with project definition, team structure, tailoring decisions, and project controls (stage gates, tolerance framework, reporting cadence)
Project Plan (project_plan.md) — 4 stages with milestones, resource plan (14 FTEs peak), budget breakdown by stage, contingency of EUR 210K (10%)
Business Case (business_case.md) — detailed with 3 options, quantified benefits (EUR 680K/yr infrastructure savings), investment appraisal (NPV EUR 1.4M at 8% discount rate, payback 26 months), sensitivity analysis on cloud cost assumptions
Risk Management Approach (risk_management_approach.md) — 5x5 matrix, risk-averse thresholds, monthly risk reviews, escalation at score >=12
Quality Management Approach (quality_management_approach.md) — aligned with BaFin BAIT requirements, mandatory security review for all AWS configurations
Communication Management Approach (communication_management_approach.md) — 6 stakeholder groups mapped, weekly Highlights to Board, bi-weekly town halls for end users
Change Control Approach (change_control_approach.md) — change budget EUR 105K, PM authority up to EUR 10K, Board for anything above
All documents are cross-referenced and consistent. The PID is ready for Board review. Shall I refine any section?

Document Excerpt

Below is a representative excerpt from a Risk Management Approach prepared as part of the PID.

Risk Management Approach — Data Centre Migration (Excerpt)

Project: On-Premises to AWS Migration Risk Appetite: Risk-averse (financial services, BaFin-regulated)

2. Probability and Impact Definitions

Probability Scale:

Level	Label	Range	Description
1	Very Low	<5%	Extremely unlikely given current controls
2	Low	5–15%	Unlikely but has occurred in similar projects
3	Medium	15–40%	Possible; should be planned for
4	High	40–70%	Likely without mitigation
5	Very High	>70%	Expected to occur

Impact Scale (Cost):

Level	Label	Threshold	Description
1	Very Low	<EUR 10K	Absorbed within team budget
2	Low	EUR 10–50K	Within stage contingency
3	Medium	EUR 50–150K	Stage tolerance impact
4	High	EUR 150–400K	Project contingency required
5	Very High	>EUR 400K	Business Case viability threatened

Risk Score = Probability x Impact. Classification: Low (1–4), Medium (5–9), High (10–15), Very High (16–25).

3. Escalation and Tolerance

Risk Score	Classification	Action
1–4	Low	Monitor. Review monthly.
5–9	Medium	Active response required. PM manages. Review bi-weekly.
10–15	High	Escalate to Executive. Mandatory response plan within 5 days.
16–25	Very High	Immediate Board notification. Exception Report if tolerance threatened.

Project risk tolerance: Aggregate residual risk exposure must not exceed EUR 500K at any point. If forecast to breach, PM raises Exception Report.

5. Roles and Responsibilities

Role	Responsibility
Project Manager	Maintain risk register, facilitate risk workshops, report to Board
Risk Owners	Monitor assigned risks, implement response actions, report status
Project Assurance (Compliance)	Independent review of risk process, BaFin alignment check
Project Board	Set risk appetite, approve responses for High/Very High risks

This excerpt is illustrative. Final content must reflect the specific project’s data and organizational risk framework.