Risk management is a critical component of the software development life cycle, aimed at ensuring the timely delivery of high-quality products by identifying, analyzing, and mitigating potential risks. Key steps in risk management include establishing a context, identifying possible risk scenarios, analyzing and ranking risks, and devising management plans for high-priority risks, while consulting stakeholders throughout the process. Common risks in software projects include estimated delivery time, budget estimation, and technical challenges, each of which can lead to financial losses and reputational damage if not managed effectively. Strategies to mitigate these risks involve accurate time and budget estimation, avoiding unnecessary additions like gold plating, and preparing for technological challenges by ensuring team readiness and clear communication with clients. Effective risk analysis not only prevents major project failures but also enhances revenue, explores new opportunities, and bolsters organizational reputation.