According to the PMBOK® Guide, specifically the Perform Integrated Change Control (PICC) process, any change to a project baseline (scope, schedule, or cost) must be formally reviewed and processed.

Why Choice A is correct: The SME is suggesting two significant changes: a change in prioritization (Scope/Resource baseline) and a reduction in the schedule (Schedule baseline). Even though the change is intended to " mitigate " a compliance need, the Project Manager cannot simply update the plan. They must follow the formal change management plan. This involves:

Assessing the impact of the SME ' s suggestion on all project constraints.

Documenting the request in the Change Log.

Presenting the change to the Change Control Board (CCB) or the relevant authority for approval or rejection. This ensures that the " mitigation " doesn ' t inadvertently introduce new risks or quality issues.

Analysis of other options:

B (Conduct a risk assessment): While assessing risk is a part of analyzing a change request, the question asks how the PM should proceed with the SME ' s claim. The formal procedure for handling modifications to the project plan is Integrated Change Control.

C (Update the schedule): This is " gold plating " or bypasses formal governance. A Project Manager should never update a baseline without an approved change request.

D (Manage Stakeholder Engagement): This is a continuous process of communicating and working with stakeholders. While the PM will engage the SME, the specific action required to handle a change to the project ' s execution logic is Change Control.

In summary, the Project Management Plan defines the " rules of the game. " When a technical expert suggests a shortcut or a pivot, the Project Manager acts as the guardian of the baselines, ensuring every move is vetted through the Perform Integrated Change Control process.