When assessing the impact of a new regulatory requirement, which of the following should be the FIRST course of action?

Updating IT policies is a consequence of understanding the regulatory impact on processes and systems, not the initial assessment step itself.

Assessing budget impact is a critical step, but it follows the initial understanding of what needs to be changed by mapping the regulation to processes, as this defines the scope of the budget required.

A new regulatory requirement primarily impacts how an organization conducts its business operations. Therefore, the initial step in assessing its impact is to identify which specific business processes are affected, how they need to change, and what data or systems are involved. This mapping provides the foundational understanding necessary to then evaluate IT implications, policy changes, and budgetary needs.

Implementing new requirements is the final stage, after assessment, planning, and policy updates, not the first course of action.