When a project manager encounters a potential change in the project environment, such as a new law that may affect the project, the first two actions they should perform are to identify the risks and consult the stakeholders. Risk identification is the process of determining the risks that may affect the project and documenting their characteristics. It is an iterative process that should be performed throughout the project life cycle, especially when there are changes or uncertainties. Consulting the stakeholders is also important, as they may have valuable insights, opinions, or expectations regarding the potential impacts of the new law on the project. The project manager should communicate with the stakeholders and seek their feedback and support. Creating a change request, requesting additional budget, or discussing with SMEs are not the first actions to perform, as they require more analysis and evaluation of the situation. A change request should be submitted only after the project manager has assessed the impact of the change and determined the best course of action. Requesting additional budget should be based on a realistic estimate of the cost implications of the change, not on a contingency. Discussing with SMEs may be helpful, but it is not as essential as involving the project team and the stakeholders, who have more direct interest and influence on the project. References:
* A Guide to the Project Management Body of Knowledge (PMBOKGuide) - Sixth Edition, Chapter
11, Section 11.2
* Practice Standard for Project Risk Management, Chapter 3, Section 3.1
* The Standard for Project Management, Chapter 4, Section 4.3.2