A project in the execution phase is over budget, and tasks on the critical path are on schedule. Which of the following should the project manger do NEXT?

Updating the project management plan is premature and skips the required analysis step - you must first understand the impact before revising plans.

Issuing a change request may ultimately be necessary, but cannot be done responsibly without first evaluating the impact to the baseline.

The project charter is a high-level authorization document and is not revised in response to budget overruns during execution.

Evaluating the impact to the baseline is the essential first step when a variance is discovered - the project manager must quantify how far the project has deviated from the approved cost baseline before any corrective or preventive actions can be determined. This analysis informs whether a change request is needed, what the magnitude of the issue is, and which stakeholders must be notified.