Project Management

Assumptions are very much related to risk, and in fact are simply low-level risks. Let's take an example of a common statement that is included in many Project Definitions – that “the resources needed for this project will be available when needed.” What kind of a statement is this? Most people would say it is an assumption. After all, when a project starts, you always assume you will get the resources you need.

However, is it really an assumption? Can you imagine starting a project where the people and equipment were not available and there was a realistic possibility that they would not be ready when you need them - perhaps because another project needed to finish first? It is not too difficult to imagine that scenario. In that case, the same statement would definitely be a risk - not an assumption.

The key point is that the same statement might be an assumption or a risk depending on the circumstances of your particular project. There is some degree of uncertainty to an assumption. The difference between an assumption and risk is whether you think there is a high or low likelihood the event will happen. If the event is negative and there is a low probability that it will happen, it can be stated as an assumption. If the event is positive and there is a high likelihood it will happen, it is also an assumption. One way to identify important assumptions is to perform a risk assessment (7.2.1 Inherent Risk Factors) and look at all the low-risk items. Most of these low risks are not worth mentioning, but some will have significant implications if events do not turn out as you think. These are the ones that you can document as assumptions.

There are two key characteristics of risks and assumptions. First, there must be some uncertainty to the event. If there is 100% chance of an event occurring, it is simply a fact. If there is a 0% chance of the event occurring, it is fiction. Neither are risks or assumptions.

Second, assumptions and risks are both outside the total control of the project team. If the event is within the control of the project team it is neither an assumption nor a risk. It should simply be managed as a part of your workplan.

Review the following examples for more clarity on assumptions and risks.

Weekly Anagram

Let's have some fun! See if you can unravel this anagram. (Anagrams are a word or phrase formed by reordering the letters of another word or phrase, such as satin to stain.)

A term coined by the consultancy KPMG to identify mainly IT projects which resist termination. Typified by a constantly changing specification and absorption of much extra resource and cost in a desperate effort to get the project finished

TOUCAN JAW PRYER: _ _ _ _ _ _ _ | _ _ _ _ _ _ _

Last Week's Anagram.

The original plan (for a project, a work package, or an activity), plus or minus approved changes

LABS APE LINEN: BASELINE PLAN

Wideman Glossary Term of the Week - Negotiating Strategies

• The several different possible negotiating strategies are considered to be:

  • Concession making

  • Contending

  • Compromising

  • Problem solving (collaboratively), and

  • Withdrawal or inaction

Labels: Assumptions and Risks