Risk Management comprises of the processes, methodologies and tools that are used to manage risks in the SDLC process of a Software Project. Risk Management is defined as the activity that identifies a risk; assesses the risk and defines the policies or strategies to mitigate the risk. "Risk management is simply a practice of systematically selecting cost effective approaches for minimizing the effect of threat realization to the organization. It can also be defined as "a project management tool to assess & mitigate events that might adversely impact a project, thereby increasing the likelihood of success."

When a Risk is identified in a Software Development Life Cycle, it implies that the estimated goals and deadlines cannot be met with the resources at hand. Hence, Risk Management in SDLC processes is indispensable for the success of any Software.