PMP Practice: Plan and manage resources

Tendai Moyo-Chibwe is managing a regulatory compliance software implementation for Björn Magnússon Pooja Iyer-Reddy. The project baseline includes 8 months for development and a fixed budget of $720,000. During month four, the compliance officer requests adding automated fraud detection features, citing recent regulatory guidance that strongly recommends such capabilities. The development lead estimates this would require two additional senior developers for three months at $18,000 per month each, pushing the budget to $828,000. The CFO has made it clear that budget overruns require board approval, which typically takes 6-8 weeks. The compliance officer emphasizes that competitors have already implemented similar features and regulatory audits begin in four months. Kai has confirmed that the original scope would still meet minimum regulatory requirements. What should Kai do?