Risk evaluation and its identification is one of the prominent fields in the construction industry concerning performance management and project success. Under the project mechanism and business development system, risk assessment and mitigation are compulsory components of a management network to achieve the project's success. In this study, the major focus of risk assessment and management revolves around the SCP (small construction projects) which are the backbone of the construction industry. Every stakeholder is involved in this process because the construction of the house is a basic need of humans for a living. Targeting the major stakeholders (contractors, consultants, and clients) as mixed-method (qualitative & quantitative) sequential approach has been adopted to evaluate the major risk factors and their occurrence with the assessment of risk management system at the country level in SCP (small construction projects). The data used in this research has been collected from sixty-two (62) small construction firms, thirty-two (32 projects), to attain the research objectives. The results indicate that the performances of most of the risk management system and organizations are responsive, shapeless, semi-stable, and unorganized with inexistent and confined compromised resources to respond with risks. The major issue was identified as the non-existence of a proper risk management system because no formal education is involved with the personals working in small construction projects. The five most important risks that should be preferable are quality and quantity dissimilarity, change in scope of work/design, deficiency of manpower, planning, and management, and technical errors. The prime hurdles which are analyzed for impressive risk management are the absence of connection between construction experts and contractors who have not been formally trained at any technical institute. This study will help in targeting the existing gap for implementation of the risk management system at small construction engineering projects. Furthermore, it will generate a pathway for the young enterprisers to come forward and take part in the development of the small construction industry by implementing effective risk management practices to achieve the project performance in terms of project success and fruitful outcomes for the upcoming projects.