The Prince2 method is usually described as process-driven project management. It has 45 definable sub-processes which are accordingly organized into eight major processes. Specifically, these processes are: Starting up a project, planning the project, initiating the said project, directing it, controlling the stage, product delivery management, managing the boundaries of the stage and finally, closing the project. These eight processes are home to a number of components that make up the entire system. The firs tone is the business case, which highlights the reason for doing the project. Second comes organization wherein the structure of the people that make up the project team are rostered. Third is the plans component and these include the different documents that shed light on what the project aims to accomplish, how the tasks must be carried out and who should be responsible for fulfilling such responsibilities. The fourth component is called controls and it describes the different ways in which both project manager and project board exercise their different control levels of the project. The fifth component, called the management of risk component, is simply the way in which such a project must be approached and how to best manage risks involved.
Prince2 project management also defines the term or the concept of ‘risk’ as an outcome that is uncertain. It can be positive or negative. It can serve as a new opportunity or a threat to the project. Whichever way the pendulum swings, it is necessary to analyze the risks and have a strong background in its management in order to know how to appropriately reduce or remove the negative effects.