A strategic IT-enabled investment is failing due to unforeseen technology problems. What should be the board of directors' FIRST course of action?

Terminating the investment immediately without assessment could lead to loss of sunk costs or missed opportunities for recovery, which is not an informed first step.

Assessing the business risk and options is the critical first step because it allows the board to understand the full impact of the failure, evaluate potential mitigation strategies, and make an informed, data-driven decision on the future of the investment, rather than reacting prematurely.

Approving an investment budget increase without first understanding the root cause, risks, and other options could escalate losses rather than resolve the underlying problem.

Revising the investment selection process is a systemic improvement measure for future investments, not the immediate action required for a currently failing investment.