During the execution phase of a project, you notice that the actual costs are exceeding the budgeted costs by 15%. Upon further investigation, you discover that the primary reason for this variance is an unanticipated increase in the cost of raw materials. Which of the following actions should you take to address this budget variation while adhering to the project governance process?
Immediately cut discretionary spending in other areas of the project to compensate for the increased cost of raw materials
Inform the project sponsor of the situation and request additional funding to cover the increased costs
Renegotiate contracts with suppliers to reduce the cost of raw materials without involving the project governance team
Analyze the impact of the budget variance on the project's overall success and present options to the project steering committee for their decision