Compare and contrast risks and assumptions. What is the core difference? Why is it important to
identify both?
According to the Project Management Institute (Kinser, 2010), assumptions are a foundational
aspect of communication and refers to unvoiced or unannounced thoughts or beliefs. Even
just by speaking verbally to someone else, you are assuming that they can hear and will
understand English, but you would never start a sentence with "I am going to speak because
you have ears and that must mean you can hear me." An assumption, if it is incorrect, can
cause consequences for a project which is why good project management includes
assumption management tools.
A project risk is an event or condition with uncertainty that, if it occurs, will negatively impact
project objectives (Kinser, 2010). These are problems or potential problems that the project is
aware of, but unable to resolve.
It is important to identify both so that a common understanding of all parties can be
achieved. A common consequence for assumptions, for example, is created when someone
lists the tasks that are needed for a project to be completed but does not assign those tasks
specifically an a responsible party. Then when it comes time for the project to come together,
everyone remembers discussing that a step was crucial - but they are all looking around
hoping someone
else
took that step. And now the project needs to be delayed to get this step
done, if it is not ruined entirely. Risks need to be recognized and understood across the team
so that they can be minimized, mitigated, or avoided entirely. For example if everyone knows
that the factory burning down would ruin a production project, that is good and everyone can
work to put in plans like how to respond to a fire, securing a backup production plant, or
other mitigations. But if the safety supervisor is never informed that the material being
manufactured requires a special type of fire extinguisher to put out fires, such as lithium
batteries or grease paint, a great fire prevention plan might still fail and cause the risk to be
incorrectly dealt with.