What It Is

PRINCE2 (Projects IN Controlled Environments) 7th Edition is a structured project management methodology and certification framework. It provides governance, control, and delivery mechanisms for projects of all scales, emphasizing principle-based, process-driven management with tailoring to context.

Key Components

• **Three pillars7 principles (guiding obligations), 7 practices (business case, organization, plans, quality, risk, issues, progress), 7 processes (starting up to closing).
• **Performance targetstime, cost, quality, scope, benefits, risk, sustainability.
• **CertificationFoundation (knowledge), Practitioner (application/tailoring).

Why Organizations Use It

• Ensures controlled value delivery and auditability.
• Reduces risks via exception management and stage gates.
• Builds stakeholder trust through defined roles and business justification.
• Offers competitive edge in regulated sectors like public, IT, construction.

Implementation Overview

• **Phased approachreadiness assessment, tailoring blueprint, training, pilots, rollout.
• Scalable for any size/industry; focuses on governance model change.
• No mandatory audits, but certification pathways ensure competence. (178 words)

What It Is

Basel III is the global regulatory framework issued by the Basel Committee on Banking Supervision (BCBS) post-2008 financial crisis. It establishes prudential standards for banks, focusing on enhancing capital quality and quantity, constraining leverage, and ensuring liquidity resilience. Its methodology integrates risk-weighted capital requirements with non-risk-based leverage and liquidity ratios for a multi-metric approach.

Key Components

• **Three PillarsPillar 1 (capital, leverage, liquidity minimums), Pillar 2 (supervisory review/ICAAP), Pillar 3 (disclosures for market discipline).
• Capital ratios: CET1 ≥4.5%, Tier 1 ≥6%, Total ≥8%, plus buffers (CCB 2.5%, CCyB up to 2.5%, G-SIB/D-SIB).
• Leverage ratio ≥3%; LCR and NSFR ≥100%.
• No fixed controls; relies on standardized/internal models with output floor.

Why Organizations Use It

Banks implement for mandatory jurisdictional compliance, reducing systemic risk and crisis vulnerabilities. Benefits include stronger resilience, optimized balance sheets, improved comparability, and investor confidence via disclosures. It drives strategic asset allocation and competitive positioning.

Implementation Overview

Phased enterprise program: governance setup, data/IT upgrades, model validation, stress testing. Targets internationally active banks globally; ongoing via supervisory oversight, Pillar 3 reporting, no formal certification.