Abstract: Risk management is the major issue in software development.Managing risk can overcome the software development issues that they are of good quality; delivered in a specified time with-in an estimated budget.Delivering best featured software in expected time and budget is a difficult task.Many traditional software process models are heavily documented and having an inflexible control mechanism which makes them difficult to apply to different software projects.Agile Process models provide a gateway to software industry because of their flexibility and adaptability.They focus on code rather documentation.