According to the PMBOK Guide, an agile project is an adaptive life cycle project that follows an iterative and incremental approach. In an agile project, the project manager facilitates collaboration and empowers the team to deliver value. When an unidentified risk becomes an issue, the project manager should help the team review the project approach and initiate the corrective actions to address the issue and prevent recurrence. Asking the sponsor to approve an additional iteration or money is not agile, as it implies that the project scope or budget is fixed and cannot accommodate changes. Asking the team to include the contingency plan in the iteration backlog is not appropriate, as the contingency plan should have been developed before the risk occurred and should be executed as soon as possible. References: PMBOK Guide, 6th edition, pages 18-19, 456-457,
686-687.