PMI Risk Management Professional (PMI-RMP)

Examine assumption and constraint analyses

Concepts

Assumption and constraint analyses are critical components of risk management, especially in regards to the PMI Risk Threat Management Professional (PMI-RMP) exam. To build a successful risk management process, you must have a deep understanding of the assumptions and constraints that influence the project, establish the project’s feasibility and dictate the project’s strategy.

Assumption Analysis:

Assumption analysis includes exploring assumptions, documenting, and validating them. Any assumption that is proved invalid can pose a risk to the project. In simpler terms, an assumption is something that the project team accepts as true or probable without any proof at the project outset. For example, the project team might assume that key resources will be available throughout the project timeline or that the strategy laid out will work in the current market situation without any hitches.

Assumption Analysis can be broken down into three parts:

Identification: Recognize and record key assumptions that contribute to the project’s foundation.
Analysis: Examine how likely each assumption is to occur, and what impact it would have on the project if it proved to be invalid. The focus here is on potential risks and formulating mitigation strategies.
Validation: This involves rechecking the assumptions continuously throughout the project lifecycle, to ensure they remain valid.

Constraint Analysis

On the other hand, a constraint is something that restricts or dictates an approach. This can include factors like budget limits, specified technologies, sponsor directives, regulatory landscape, and many more.

The process for Constraint Analysis also involves three steps:

Identification: Spot the key constraints that dictate the project’s limitations.
Analysis: Determine the impacts of these constraints on the project. Evaluate not just the primary impacts, but also the potential secondary effects.
Validation: Continuously re-evaluate constraints throughout the project lifecycle, as they may change or evolve.

Both assumption and constraint analyses are integral to building a robust risk management plan, contributing significantly to the PMI-RMP exam. The following table provides a summary:

	Assumption Analysis	Constraint Analysis
What	Beliefs that are accepted as true without proof	Factors that dictate limitations
Examples	Resource availability, accepted strategies	Budget limits, technology directives
Process	Identification, Analysis, Validation	Identification, Analysis, Validation
Impact on Risk Management	Assumptions play a significant role in the potential risks associated with the project.	Constraints can alter or limit the responses and mitigation strategies for potential risks.

Understanding these conceptually and practically is a significant step towards acquiring a PMI-RMP certification. It also underpins a professional’s ability to design and manage a risk management plan adeptly. Always remember that risks come in various shapes and forms, and so should your mitigation strategies. Equal attention should be given to assumption and constraint analyses to ensure that all potential areas of risk exposure are adequately covered.

Answer the Questions in Comment Section

True or False: Assumption and constraint analyses help identify uncertainties in project management.

True
False

Answer: True

Explanation: Assumptions and constraints are potential sources of risk and therefore, identifying these uncertainties can inform risk assessment and risk management within a project.

Which of the following are critical foundations of any project?

a) Constraints
b) Assumptions
c) Risks
d) All of the above

Answer: d) All of the above

Explanation: Every project operates under certain constraints and assumptions, and different project risks derive from these factors. Therefore, all these elements serve as the foundation of any project.

Which one of these statements is false about assumption analysis?

a) It is a tool used for identification and monitoring
b) It can be exploited but not mitigated
c) Assumption can be something that is assumed to be true, but not yet validated

Answer: b) It can be exploited but not mitigated

Explanation: Assumption analysis can be used to not only exploit but also mitigate the risks involved in project management.

True or False: A project assumption is always valid and requires no further analysis.

True
False

Answer: False

Explanation: Project assumptions are presumed to be true for planning purposes, but they may not always be valid. They require further analysis to understand their potential impact on the project.

Assumption analysis in project management is intended to________?

a) Identify inherent risks
b) Validate project timelines
c) Identify project resources
d) Validate project budget

Answer: a) Identify inherent risks

Explanation: Assumption analysis is used to identify inherent risks and to determine the validity of the assumptions that have been made.

Which of the following is not a typical constraint in project management?

a) Time
b) Quality
c) Scope
d) Assumptions

Answer: d) Assumptions

Explanation: Typical constraints in project management are often time, cost and scope. Assumptions are not considered a constraint, but rather variables that could influence these constraints.

True or False: Constraints analysis includes an analysis of the time, cost, and scope limitations on the project.

True
False

Answer: True

Explanation: Constraints analysis does indeed involve the analysis of time, cost, and scope limitations. This helps to determine the limitations within which the project must be delivered.

Which of the following is a critical step in carrying out a successful project risk management?

a) Identifying assumptions that might turn out to be false
b) Ignoring constraints to broaden the project scope
c) Not considering inherent risks in the project
d) Making all decisions based on assumptions

Answer: a) Identifying assumptions that might turn out to be false

Explanation: Assumptions are considered potential risks and therefore, their identification helps in proactive risk management.

True or False: Assumptions are facts that are confirmed at the start of the project.

True
False

Answer: False

Explanation: Assumptions are not facts; rather, they are presumed to be true for the project to proceed. As the project evolves, they need to be tested and validated.

As a project manager, what should you do if a constraint changes mid-project?

a) Ignore the change and follow the original project plan
b) Update the project plan reflecting the change and communicate it to all stakeholders
c) Increase the project budget
d) Decrease the project timeline

Answer: b) Update the project plan reflecting the change and communicate it to all stakeholders

Explanation: Changing constraints can impact the project plan. Thus, it is essential to update and communicate the changes to all stakeholders. This ensures everyone understands the new constraints and can adjust their expectations or tasks accordingly.

True or False: Constraint and assumption analyses are one-time activities performed at the start of a project.

True
False

Answer: False

Explanation: Both analyses should be ongoing activities because the validity of assumptions can change over time and constraints can be updated based on project progress.

What is the main purpose of examining assumptions and constraint analyses?

a) To identify and manage uncertainties related to the project
b) To identify the project team members
c) To determine the project budget
d) To set the project deadlines

Answer: a) To identify and manage uncertainties related to the project

Explanation: The main purpose of these analyses is to identify potential sources of risk (uncertainties) in a project and manage them proactively. This includes assumptions that may turn out to be untrue and constraints that limit the project’s reach.