A company is implementing a growth strategy by constructing a new production facility, which will...

When new regulations are implemented that affect a project’s scope, it is essential for the project manager to perform an impact analysis. This analysis will determine the extent of changes needed to comply with the regulations and how these changes will affect the project’s cost, schedule, quality, and other critical factors. The PMBOK® Guide highlights the importance of assessing changes and determining their impact on the project plan. It is not sufficient to simply continue with the existing governance policy or directly comply without understanding the implications. Escalating the issue to upper management without first analyzing the impact may lead to decisions that are not aligned with the project’s best interests.