In the industry of software development, the risk is most effective competitor that tries to flop the project at any stage of development. Risk is a critical factor that is obscure and has the potential to wreak massive loss of the project in terms of money, time and resources. It is also harmful to the credibility of the organization. Most of the organizations don't focus on this factor, and as a result, might witness the project failing. Lack of risk assessment is very common in most organizations. This paper introduces risk assessment factors and analyzing the various situations to tackle these. We investigate the most effective key risk variables cost, strategy, technique, operation, and some unknown/unpredictable factors. Based on these variables, survey and interviews are conducted and examined. We applied empirical studies on these variables and map them on the cause-and-effect analysis technique. The proposed technique elaborates the factors behind these risk variables. After that, results and analysis of these variables have been incorporated to scale down the impact of risk.