If risk is not managed properly it can be one factor to hinder success of a project and even it mayrnlead to project failure. The objective of this study is to show the application of proper riskrnmanagement practice is vital for project success. The specific objectives of the study is to assessrnthe effective risk management practice by taking the core banking system implementationrnproject of Wegagen Bank Sh.Co. as a case. The study detected the important risk managementrnelements missed during the implementation of core banking system replacement project of thernbank. The purpose of this study is to assess the project risk management practice during thernBankâ€™s core banking system replacement project by focusing on basic project risk managementrnassessment process such as risk management planning, risk identification, analyze risk, evaluaternrisk, treat risk and monitoring and controlling, that were identified as basic framework onrndifferent literatures. The main research question focused on what was the practice of project riskrnmanagement of core banking system replacement project of Wegagen bank Sh. Co.?The study usedrndescriptive research design and analysis method, qualitative research approach and purposivernsampling technique. The semi-structural interview was conducted to collect primary data fromrnthe respondents that consisted of 6 core team members including the project manager out of 28rndirect participants of the project. The finding of the study indicates that based on the analysis, thisrnstudy identified the major gaps between the theory and in the actual risk management practice of thernproject. Accordingly the study recommends that as effective communication is basic to minimizernrisk during implementation of a project, it is highly recommended that all participants should berncommunicated properly about risk and in all life cycle stages of the project. Moreover, to narrowrnthe gap occurred due to risk mismanagement during implementation of the project due attentionrnand training should be given for participants with related to various processes under projectrnrisk management practice and risk identification. Based on the analysis finding the study alsornrecommends that organizations should prepare risk policy and procedure specifically for (IT)rnprojects that guide the project team to go through a disciplined risk management process. Alsornorganizations should allocate separate budget and responsible body that can facilitate IT riskrnrelated matters during implementation of projects.