The project manager needs to document how risk management will be undertaken during the project.

The step where the project manager needs to document how risk management will be undertaken during the project is during the "Identify: define context and objectives" step of the risk management technique. This initial step is crucial for setting the scope and objectives of risk management activities, providing a framework for identifying, assessing, and managing risks throughout the project.References: (PRINCE2® 7 Foundation Handbook, AXELOS)