Addressing regulatory compliance issues is critical as they can have significant legal and financial implications for the project and the organization. These issues should be prioritized to ensure that the project adheres to necessary regulations and standards, which is a fundamental aspect of project management and business analysis. By focusing on compliance defects first, the project lead can mitigate risks that could derail the project or lead to severe penalties.
References: The prioritization of regulatory compliance issues is supported by the principles of risk management and quality assurance, which are integral to both PMP and Professional in Business Analysis standards. These principles emphasize the importance of addressing compliance and legal requirements to maintain the integrity and viability of the project123.