The Meaning of Contextual Understanding

What does contextual understanding really mean? Basically, it means to look at the setting of a project, such as the influencing factors in the project's environment, as well as major elements and their relationships. In other words, getting a sense of the "overall picture" and how the project fits within it; determining all elements, e.g., facts and assumptions, and ascertaining how they interact; and adopting approaches that enable efficient and effective responses.