In an agile or iterative environment, when external changes such as legal or regulatory updates affect project deliverables, the appropriate action is to assess and reprioritize the product backlog. This ensures alignment with the latest compliance needs while balancing value delivery. According to the Agile Practice Guide and PMBOK Guide - Seventh Edition, backlog refinement is used to review, adjust, and prioritize features based on changing business and legal contexts. Option B assumes additional resources are needed without first evaluating impact. Option C may be done, but the first step is impact analysis. Option D assumes feasibility before performing analysis. References: Agile Practice Guide, Chapter 5 - Iteration Planning and Backlog Refinement PMBOK Guide - Seventh Edition, Delivery and Planning Performance Domains ##############################################