Explanation
Since the project manager cannot avoid, transfer, or mitigate the risk, the only remaining option is to accept the risk and develop a contingency plan to handle it if it occurs.

Explanation
Risk impact assessment involves calculating the impact of identified risks. Risk analysis is the process of examining, estimating, and evaluating the impact of risks, which helps in calculating the impact (Reference:
PMBOK Guide, 6th Edition, p. 417)

Explanation
To ensure an effective risk management plan, the risk manager needs to consider aligning the plan to project constraints and priorities and obtaining stakeholder acceptance, as these factors will help ensure that the plan is relevant and supported by the project team and stakeholders.

Explanation
The risk manager is responsible for ensuring that all risks, including secondary risks, are identified and addressed during the risk response planning process. If key secondary riskswere missed, the risk manager should be held accountable. (Reference: Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK Guide) - Sixth Edition, Section 11.5)

Explanation
The total contingency budget that should be created is US$52,000. This is calculated by multiplying the probability of each risk occurring by its monetary impact and then adding the results together: (0.4 * 100000)
+ (0.6 * 20000) = 40000 + 12000 = 52000. This calculation takes into account the likelihood of each risk occurring and its potential impact on the project.