The legal department informs the project manager that upcoming legislation may require stronger protection of customer data, necessitating additional security features not covered by the current contract to maintain a client's customer database. What should the project manager do?

This situation presents a potential future event (new legislation) that, if it occurs, would have a negative impact on project objectives (additional security features, contract changes). This perfectly aligns with the definition of a risk. Recording it in the risk register ensures it's documented, analyzed, and monitored. Discussing it with the sponsor and client is crucial for collaborative decision-making on appropriate risk responses, such as mitigation strategies or contingency plans, before it becomes an issue. Asking legal to raise it during the next contract negotiation is reactive and delays addressing a potential problem. Seeking the sponsor's help to persuade the client immediately is premature without proper risk analysis and agreement on a course of action. Waiting until requirements are finalized is also reactive and could lead to costly, rushed changes or non-compliance.