Deepti, I think here PMI means that the risk is already in the Risk Register, and impact analysis was already done for it. We just don't have a budget for it, because the company chose to allocate budget only for high-potential and high-impact risks. But this risk is already analyzed. Actually in the question they do say that this risk has high impact but low potential, so the impact analysis is already done.
Definitely a tricky one.

Deepti,

It looks like that question came from the PMI simulator. You should contact the organization who wrote the test questions for clarification, as moderators on the Prepcast Forum do not have any insight into the questions from other organizations.

Harry

please help in clarifying

Please refer the attachment for question.

It says what you should do first, i chose the option of impact analysis and raising a change request if necessary

but base don explanation it says Updates risk management plan. I agree we may have to do it to also include high impact, low potential risks in budget in future. But would that be first thing to do?