When there is a change in government regulations that affects a project, the project manager should first understand the new regulations and evaluate their impact on the project. This involves studying the new regulations with the team and assessing how they affect various project variables such as scope, cost, schedule, and quality. Once the impact is understood, the project manager can then make necessary adjustments to the project plan. References: PMBOKGuide, 6th Edition, Section 4.3: Direct and Manage Project Work, and Section 11.6: Control Risks.

Schedule reserves are the amount of time allocated for unforeseen risks or delays in a project. They are usually calculated based on the level of uncertainty and complexity of the project. In a hybrid project, where both agile and predictive approaches are used, the project manager should reconsider the necessary schedule reserves based on the progress and performance of each module. By doing so, the project manager can identify the critical path, prioritize the work, and adjust the schedule accordingly. This can help to take the schedule back and accelerate the ROI of the project. References: PMBOK Guide 7th Edition, Chapter
8.3.3.2; Agile Practice Guide, Section 3.2.2.

According to the PMBOK Guide 7th Edition, the project manager should lead and support the project team and collaborate with them to deliver the project outcomes. In this case, the project manager should meet with the project team to discuss the concerns and determine how to ensure the project's deliverable can compete with the competitor's, such as by incorporating customer feedback, enhancing the features, or applying the newest technology. The project manager should not perform a Kano analysis, as this is a technique to prioritize the customer requirements, not the competitor's. The project manager should not meet with the development team only, as this may exclude other team members who may have valuable inputs. The project manager should not note this concern in the risk register and meet with the sales team only, as this may not address the root cause of the problem and may not involve the project team12. References: PMBOK Guide
7th Edition, Chapter 3: Project Performance Domain, Section 3.3: Lead the Team, Page 65; Chapter 4: Project Delivery, Section 4.2: Collect Requirements, Page 89.

A change request is a formal document that proposes a modification to some aspect of the project, such as the user requirements, the deliverables, the schedule, the budget, or the quality standards123. Change requests can originate from various sources, such as the stakeholders, the project team, the customer, or the environment12. Change requests need to be evaluated and approved before they can be implemented, as they may have significant impacts on the project performance, scope, cost, time, quality, and risk123.
The project scope statement is a document that defines and documents the project objectives, deliverables, requirements, assumptions, constraints, and acceptance criteria12. The project scope statement is the basis for making project decisions and controlling changes12. Therefore, the project manager should evaluate the change request against the project scope statement to determine if the change is necessary, feasible, and beneficial for the project123. The project manager should also consider the impact of the change on the other project components, such as the schedule, the budget, the quality, and the risk123.
The other options are not the best actions for the project manager to take next. Discussing approval of the change request in the next project meeting (A) may delay the decision-making process and cause confusion among the project team and stakeholders. Performing a risk assessment on the required change request (B) is an important step, but it should be done after evaluating the change request against the project scope statement, as the risk assessment may depend on the scope implications of the change. Asking the sponsor for more funds to cover the change request (D) is not appropriate, as the project manager should first determine if the change is justified and aligned with the project scope statement, and then explore alternative ways to accommodate the change within the existing budget or negotiate a trade-off with the sponsor. References: 123

When a stakeholder requests changes that could impact the project scope, the project manager should first review and validate the scope management plan. This plan outlines how scope changes are managed and controlled. If the new ideas are not covered within the existing project scope, they may require a formal change request and impact analysis before proceeding. This ensures that any changes align with project objectives and do not adversely affect project constraints such as time, cost, and quality.
:
Project Management Institute. (2017). A Guide to the Project Management Body of Knowledge (PMBOK Guide) - Sixth Edition.
Project Scope Management according to the PMBOK1.
The PMBOK's Project Scope Management Knowledge Area2.
Project scope management: Plan, template, and guide3.