In regards to Risk in project management,

A leading biomedical company hires you as a consultant to help with a serious problem. The company had planned to complete their final acceptance testing of a new pacemaker last week but found a significant integration risk between the pacemaker and the instrumentation used to perform diagnostic analysis on the pacemaker. The cause is determined to be a lack of thorough testing due to insufficient time allocated to the integration and test phase. Your job is to investigate the risk and make recommendations to reduce the risk. Project management wants to maximize quality and minimize total cost.

How would you handle these conflicting objectives? What are your recommendations to project management regarding this risk? How does this scenario relate to managing contingency allowance?