A company building a new production facility must comply with recently implemented financial regulations that will cause a major scope change, despite an existing governance policy. How should the project manager respond?

The project manager's primary responsibility when faced with a significant change, especially one mandated by external regulations, is to understand its implications. Performing an analysis to assess the impact on scope, schedule, cost, resources, and quality is crucial before any action. This allows for informed decision-making and proper communication to stakeholders. Continuing to follow an outdated governance policy when a major external change occurs is irresponsible. Escalating to upper management without first understanding the impact is premature and shifts responsibility without providing necessary data. Immediately implementing regulations without an impact assessment could lead to unforeseen problems and project failure.