APMG Agile Foundation Practice Exam

What is the purpose of a Business Case in Agile projects?

1. To outline project scope

2. To provide a financial justification for the project

3. To analyze project risks

4. To validate project outcomes with stakeholders

The correct answer is: To provide a financial justification for the project

The purpose of a Business Case in Agile projects primarily revolves around providing a financial justification for initiating a project. It articulates the rationale behind the investment by detailing the expected benefits, costs, and potential returns on investment. This is crucial in Agile environments, where projects are often evaluated continuously and can pivot based on evolving requirements and stakeholder feedback. By establishing a clear financial justification, the Business Case ensures that resources are allocated effectively and that the project aligns with the organization's strategic goals. This financial perspective helps stakeholders understand the value proposition of the project, facilitating informed decision-making and prioritization of initiatives that deliver the highest value. In comparison, outlining project scope tends to focus more on defining what is included in the project work rather than justifying it financially. Analyzing project risks is essential, but it serves a different purpose, primarily around risk management rather than overall project justification. Validating project outcomes with stakeholders is significant for ensuring that the deliverables meet expectations but again, does not primarily address the justification aspect that the Business Case fulfills. Thus, the focus on financial justification forms the core purpose of a Business Case in Agile projects, making it a critical component in guiding project decisions.