A struggling company is executing a critical project but external changes have left insufficient funding to complete it. What should the project manager do first?

The project manager's first step should always be to assess the situation thoroughly. This involves understanding the full impact of the funding shortfall on the project objectives, schedule, and resources. After assessment, evaluating alternatives allows for a comprehensive approach to address the issue, which could include scope reduction, seeking additional funding, or other strategies. Reducing scope immediately might be premature without understanding the full impact on deliverables and stakeholder expectations. Parking the project is a drastic measure that should only be considered after exploring other options. Asking the sponsor for more funds is an alternative, but it's best done after the project manager has analyzed the situation and can present a clear case with potential solutions.