The risk management is an integrated approach, it is essential for every project i.e. from small size to large size projects. In this paper, we present a new approach for
managing the risk in easy and effective manner. This approach is for minimizing the confusion and loss associated with a project. It is performed continually over the life of a program and it can
be achieved in several phases which include Risk Identification, Risk Priority, Risk Management Plan, Risk Monitoring and Internal Audit. The risk management plan includes product size, business impact, customer, process, technology, development environment, staffing (size and experience), schedule, and cost.