Project Management Fundamentals and Core Concepts · Topic 2 of 6
Risks, Issues, Assumptions, Constraints and Ethics
CAPM essentials: telling risks, issues, assumptions and constraints apart, the logs that hold them, and the four values of the PMI Code of Ethics.
- 4 min
- Risk: may happen. Issue: has happened. Assumption: believed true. Constraint: a limit.
- Risks go in the risk register; issues in the issue log; assumptions and constraints in the assumption log.
- Risks can be threats or opportunities.
What it is
Every project works with uncertainty and limits. CAPM expects you to tell four ideas apart: a risk may happen, an issue has happened, an assumption is believed true without proof, and a constraint is a limit you must work within. Each is recorded in its own place so the team can act on it.
The PMI Code of Ethics and Professional Conduct guides how project practitioners behave while they do this work.
How it works
Four terms that look alike
| Term | Meaning | Where it is recorded | Example |
|---|---|---|---|
| Risk | An uncertain event or condition that, if it occurs, has a positive or negative effect on objectives | Risk register | A key supplier might deliver late |
| Issue | A current condition or situation that may affect objectives | Issue log | The supplier has delivered late |
| Assumption | A factor believed to be true, real or certain without proof | Assumption log | The test lab will be available in May |
| Constraint | A limiting factor on the project | Assumption log, project charter, scope statement | The budget cannot exceed 200,000 |
Risks can be threats (negative) or opportunities (positive). An issue is handled now; a risk is planned for in advance.
Typical constraints
The classic constraints are scope, schedule and cost, often extended with quality, resources and risk. Changing one usually affects the others. For example, cutting the schedule may need more resources or a smaller scope.
From one to another
- An assumption that turns out to be false becomes a risk or an issue.
- A risk that occurs becomes an issue.
- An issue that cannot be resolved at the team's level may need to be escalated.
A worked example: the team assumes users have the latest browser. Testing shows 30% do not. The assumption was wrong, so the team records an issue in the issue log, assigns an owner, and checks the risk register for other browser related risks.
The PMI Code of Ethics and Professional Conduct
The Code is built on four values:
| Value | What it means in practice |
|---|---|
| Responsibility | Taking ownership of decisions and their consequences; keeping commitments |
| Respect | Treating people and resources with regard; listening to other views |
| Fairness | Making decisions impartially and objectively; disclosing conflicts of interest |
| Honesty | Telling the truth in communication and conduct |
For each value the Code has aspirational standards (what practitioners strive for) and mandatory standards (firm requirements).
Ethics scenarios
| Scenario | Ethical response |
|---|---|
| A supplier offers you a gift to win a contract | Decline it and follow the organization's policy; disclose the offer |
| You realize your status report understated a delay | Correct it and report the true status |
| A friend's company bids on your project | Disclose the conflict of interest and step back from the decision |
| You are asked to do work you are not qualified for | Say so honestly and seek help or training |
In ethics questions, choose the answer that is honest, follows policy and makes the situation transparent. Hiding, delaying or "handling it quietly" is almost never right.
How the exam asks about this
- "A risk has occurred. Where is it now tracked?" In the issue log.
- "The team believes a vendor will deliver on time but has no proof. What is this?" An assumption.
- "Which Code of Ethics value covers disclosing a conflict of interest?" Fairness.
What to remember for the exam
- Risk: may happen. Issue: has happened. Assumption: believed true. Constraint: a limit.
- Risks go in the risk register; issues in the issue log; assumptions and constraints in the assumption log.
- Risks can be threats or opportunities.
- A false assumption can create a risk or an issue.
- Code of Ethics values: responsibility, respect, fairness, honesty.
Do not put a current problem in the risk register and wait. Once it has happened, it is an issue and needs action.
Common mistakes
Treating every risk as negative. Opportunities are risks too.
Calling a budget limit an assumption. A fixed limit is a constraint.
Picking a "smooth it over" answer in ethics questions. Honesty and transparency come first.
Check yourself
What is the difference between a risk and an issue?
A risk is uncertain and may happen in future; an issue is a condition that exists now.
Where are assumptions and constraints recorded?
In the assumption log, with key ones also in the charter and scope statement.
What are the four values of the PMI Code of Ethics and Professional Conduct?
Responsibility, respect, fairness and honesty.
Topic 2 of 6 in Project Management Fundamentals and Core Concepts
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