A project manager is leading a project focused on developing a machine learning platform. Midway through the project, the project manager learns of a new regulatory policy that will significantly change the way data is stored, processed, and manipulated. What should the project manager do?

According to PMI principles, when a project manager encounters a new constraint, risk, or regulatory change, the immediate next step is to assess and evaluate its impact before taking any formal action. Because the change involves complex regulatory policies regarding data storage and processing, the project manager must consult with subject matter experts (compliance experts) to accurately determine how the policy affects the project. Only after this expert evaluation is complete can the project manager formulate a response, submit a formal change request, or update project baselines and documents. Acting without expert assessment risks implementing incorrect or non-compliant changes.

Option A: Reevaluating the scope and WBS is premature; the project manager must first understand the specific impact of the regulation by consulting experts before planning changes.
Option C: Informing the sponsor and reviewing the budget should only occur after the project manager has assessed the actual impact and formulated a potential response strategy.
Option D: Updating the project scope directly bypasses the Perform Integrated Change Control process and is premature without a thorough impact assessment.

1. Project Management Institute. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition. Section 4.6 (Perform Integrated Change Control), pp. 113-115. (Details the necessity of assessing the impact of a change before updating baselines).

2. Project Management Institute. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition. Section 11.3.2.1 (Expert Judgment), p. 422. (Highlights the use of subject matter experts to evaluate risks and regulatory compliance impacts).

3. Project Management Institute. (2021). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Seventh Edition. Section 2.8 (Navigating Complexity), p. 90. (Discusses consulting experts to navigate complex project environments, such as new regulatory policies).