PMP · Question #717
A company is implementing a growth strategy by constructing a new production facility, which will soon move into the operation phase. Although a governance policy was already in place, the company…
The correct answer is A. Perform an analysis to assess the Impact on the project. When new financial regulations cause a major project scope change, the project manager should first perform an analysis to assess the impact on the project.
Question
A company is implementing a growth strategy by constructing a new production facility, which will soon move into the operation phase. Although a governance policy was already in place, the company must comply with new financial regulations that have been recently implemented. Compliance with the regulations will cause a major change in project scope. How should the project manager respond to this requirement?
Options
- APerform an analysis to assess the Impact on the project.
- BProceed with the existing company governance policy.
- CEscalate the issue to upper management and let them decide.
- DDirectly comply with the financial regulations.
How the community answered
(27 responses)- A74% (20)
- B7% (2)
- C15% (4)
- D4% (1)
Why each option
When new financial regulations cause a major project scope change, the project manager should first perform an analysis to assess the impact on the project.
Any significant change to project scope, especially one driven by external regulations, requires a thorough impact analysis to understand its implications on the project's budget, schedule, resources, risks, and deliverables. This analysis provides the necessary information for informed decision-making and planning.
Proceeding with the existing governance policy when new financial regulations are in place would lead to non-compliance, exposing the company to significant legal and financial risks.
Escalating the issue to upper management is often a necessary step for major changes, but it should typically follow the project manager's initial assessment of the impact, allowing them to present data-backed options or recommendations.
Directly complying with new regulations without a prior impact analysis could lead to unforeseen problems, inefficient implementation, or conflicts with existing project constraints and objectives.
Concept tested: Change Management, Regulatory Compliance
Source: https://www.pmi.org/learning/library/change-management-project-management-8698
Topics
Community Discussion
8
Bao N.Jul 5, 2026A is correct here. New financial regulations mean a major scope change, so you have to analyze the impact first before doing anything else. D is the trap because people see "comply with regulations" and jump straight to it, but you never just blindly comply without understanding what it does to your project.
Mateus R.Jul 5, 2026A is the right call here. Think of it like a doctor ordering tests before prescribing treatment, you have to assess the impact on scope, schedule, and cost before changing your project plan, even when the new regulation is mandatory.
Yuki V.Jul 5, 2026Agreed on A, and the doctor analogy is solid, but the key word in the stem is assess, which maps directly to the Monitor and Control Process Group where you evaluate impacts before pushing through a change request.
Viktor S.Jul 2, 2026A, saw this on my exam, panicked then remembered analyze first.
Zlatan X.Jul 5, 2026Confirmed A on exam last week. Before any governance board can rule on a scope shift of this magnitude, the PM has to quantify the impact across cost, schedule, and benefits realization so leadership has the data to make an informed decision.
Bao N.Jul 6, 2026Agreed on A but heads up, the wording on my last three practice sets said assess instead of quantify, same concept but if you only drilled the exact phrasing it can throw you for a second.
Yuki V.Jul 5, 2026Going with D. When new regulations drop, compliance is not optional and you do not sit around analyzing or escalating while your company is out of bounds, you comply first and then deal with the scope fallout through the change control process.
Viktor S.Jul 5, 2026A is correct here, Yuki. The question is asking about the best first step, and that is assessing scope and impact so you can make an informed change request rather than rushing into implementation work blind, compliance urgency does not skip analysis, it just prioritizes it.