Necessarily for practical reason but not sufficient as you still need to improve your judgment with experience
Difference Between Knowledge and Understanding
And with experience I'm not talking about perceptual experience but experience literally, dealing with particular practical situations
i don't know if i understood correct something i read/-The philosopher, Spinoza wrote, that any idea we may hold..is a part of a infinite-series-of-ideas ..and infact connects back up to a core..That Original starting point ( belongs) to God (for Sp., God=Nature) -This Infinite-series-of-ideas constitutes God's mind. or infinite intellect. Our human thoughts, maybe limitedly superficial perceptions, sometimes, somewhat chaotic..not exactly 'ordered thought' & this 'knowledge' from random exp. is also the origin of great delusions! , the one where we think we are 'free'..(Spinoza said).. But no, -we are determined by 'causes'. Knowledge involves grasping a things causal connection , and then that is where the knowledge shows not just, that -it is-, but how. and why, it is.
You can have knowledge with out understanding.
You can also have understanding with out knowledge.
Best way to demonstrate this would be creating fire.
This example will show understanding with out knowledge:
I understand by rubbing 2 sticks together it will cause heat.
The heat can generate into an ember which can be blown into a flame which will cause fire.
I understand this process.
However, I may not know how to rub these sticks together efficiently.
I do not know the best way of accomplishing such heat.
Furthermore, if I get an ember I may not know what to do with it once I have one.
Which could be caused by lack of experience etc.
On the Flip Side
This example will show knowledge with out understanding:
In this situation I will know how to make a fire.
The way this usually works is because of the experince is high.
The reason the experince level is high may be due to natural talent or mirroring others!
People in like the caveman days were not very smart.
They had simple minds which is why many cave drawings show pictures and images. Some show how to hunt or how to fish etc.
They copyed what was shown but it doesn't necessary mean they understand it.
They know it because they seen it and worked hands on with it.
However, they may not understand the whole process of it.
Understanding is considered being aware of the Big Picture and how all the small things inside of it work in accomplishing the Big Picture.
Knowledge is considered to be the small things inside.
In business they is considered to be like the Managers vs the Factory Workers.
I know that you understand what you know but I know that you know I understand and I know that you know that I know, understand?
Ok, I'll stop now. Gotta go to the bank before it closes.
I know you are going to the bank because you told me.
I understand you will be using some form of transportation which will allow you the means to travel from your current location to the bank.
I understand you are in a rush to get there before it closes.
I understand this rushing need you have may in danger the lives of others driving near you or even yourself.
I hope you come back safely 
Understanding is having knowledge and making application of it.
Anyone can know how the chess pieces move,it takes understanding how they all work together to win a game.
I think the words are to an extent synonymous, and so cannot be separated really.
Understanding also means a lot of different things. For me it has to do primarily with things that are commicated to you from someone else, "I understand you now", "I don't understand what you are saying" seems to me to be sort of parade examples of the word.
You all know you have a common or shared debt to give to humanity, but you only understand how to perform it by reading Socrates
i don't know if i understood correct something i read/-The philosopher, Spinoza wrote, that any idea we may hold..is a part of a infinite-series-of-ideas ..and infact connects back up to a core..That Original starting point ( belongs) to God (for Sp., God=Nature) -This Infinite-series-of-ideas constitutes God's mind. or infinite intellect. Our human thoughts, maybe limitedly superficial perceptions, sometimes, somewhat chaotic..not exactly 'ordered thought' & this 'knowledge' from random exp. is also the origin of great delusions! , the one where we think we are 'free'..(Spinoza said).. But no, -we are determined by 'causes'. Knowledge involves grasping a things causal connection , and then that is where the knowledge shows not just, that -it is-, but how. and why, it is.
yes it is the common knowledge of the cause (the Creator of Nature) that we all share and so gives us something to be moral about in short
Knowledge is of "what" and understanding is of "how"
"Paris? Yes I know how to get there."
"Baking? Yes I know how to do that."
Indeed. X, your first example is ruled out because technically, you understand by rubbing two sticks it will cause heat thereby implying that you had prior knowledge and not an absence of it.
Knowledge is of "what" and understanding is of "how"
"Paris? Yes I know how to get there."
"Baking? Yes I know how to do that."
There are three types of 'knowing'
"Knowing that" (propositional knowledge) - "I know that it is snowing"
"Knowing 'F'" (objectual knowledge) - "I know the song"
and, as you mention, "knowing how" (veridical knowledge) - as you say, "I know how to bake"
In veridical knowledge you can always substitute 'knowing how' for 'understanding' - and that's why and when knowing and understanding are the same. 'I know how to bake' means 'I understand how to bake' . So knowledge is sometimes understanding but only when it is knowledge of how to do something - in other words, knowledge of skill is understanding.
So going back to the moral law, you can just say 'I know how to implement the moral law'. It condenses the equivalent meaning when you say 'I know what the moral law is' and 'I understand how to implement it in practice' . When you say you 'know how to implement it in practice' you are also implying you know what it is
So, you can say 'I know how to pay back to humanity' , implying you 'understand how to pay back to humanity' implying further you know what is paying back to humanity (in other words, as we were calling it, your debt to it)
And this type of knowledge (veridical) is the only equivalent to understanding and thus to wisdom, the absolutely highest good
Heh. I thought we were talking about chess knowledge & chess understanding but I still believe what I wrote is still valid. In my opinion, understanding is pertinent in human thinking. The "why" & "how" come to the fore in hindsight.
Dreaming is supposedly the mind trying to organize oneself from what's happened in our waking life. Professionals trying to analyze them can't really do so, in my understanding (heh), without prior knowledge of one's biography & current goings on, true or not?
I certainly couldn't understand my own dreams knowing myself because I do not have the knowledge & training they do.
In other words understanding isn't necessary for theoretical reason but is necessary for practical reason