To ensure that all significant risks are captured, it is necessary to know the objectives of the organization and the project. Objectives lie at the heart of the context definition, and they are linked into the risk management process via criteria for measuring success. Success criteria are the basis for measuring the achievement of objectives, and so are used to  easure the impacts or consequences of risks that might jeopardize those objectives. The first step identifies the scope of the project, the main questions and issues of concern to the organization, and the relationship between the project and the organization’s strategy and business objectives.

General requirements for the organization that is buying or procuring the project are often specified in the form of policy objectives. They are usually applicable to all purchases, and so are often elaborated in procurement specifications and contracting procedures, often with specific additional approval and other requirements to be applied for large projects. An example of general project procurement objectives from a private sector commercial organization is shown in Table 2.1. In practice, these project policy guidelines are complemented by a set of contracting rules and processes.

Table 2.1—Private sector procurement policy example

The company’s policy is to develop a clear and definite project execution strategy that will:
• adopt the most cost effective strategy by making use, to the extent available, of resources, expertise and experience within the engineering department and the company as a whole;
• ensure the user business units are involved in developing the strategy;
• optimize project schedule to ensure timely implementation and operation of project facilities within the framework of the company’s overall operational plan;
• minimize disruption to any current operations at any company site or facility;
• minimize health, safety and environmental risks during construction.