You are the project manager for a new software development project. A previously unidentified risk is discovered when the project is nearing completion. You realize that this risk may adversely impact the project`s overall ability to deliver. As a project manager, what step do you take FIRST?

1. Perform Quantitative Risk Analysis
2. Inform the project sponsor and the stakeholders about the potential impact of the risk on the project
3. Perform Qualitative Risk Analysis
4. Mitigate the risk to reduce its impact