How does PRINCE2 Agile approach project governance?

PRINCE2 Agile approaches project governance by ensuring a structured yet flexible governance framework. This balance is crucial because it allows organizations to maintain control and oversight over projects while still being able to adapt and respond to change, which is a core principle of Agile methodologies.

The structured component of governance provides clarity in roles, responsibilities, and procedures, which helps to align the project with organizational goals and compliance requirements. Flexibility, on the other hand, allows teams to adapt their processes as necessary without losing sight of these objectives. This combination fosters an environment where teams can be responsive to change, encourage collaboration, and deliver value incrementally, while still adhering to the best practices of project management.

Taking this into account, other options, such as avoiding structured processes, implementing strict hierarchies, or solely focusing on Agile methodologies, do not capture the essence of PRINCE2 Agile's philosophy. A rigid structure or focus solely on Agile would limit the ability to manage governance effectively across diverse project contexts.