SAP carve-out projects involve the extraction of data, processes, and systems from the existing SAP environment, introducing risks such as data integrity issues, compliance breaches, operational disruptions, and financial discrepancies. To ensure successful outcomes, organizations should conduct a comprehensive risk assessment, establish a clear governance framework, implement robust data management practices, monitor and report on progress, and engage stakeholders. A case study demonstrates the importance of integrating risk management into SAP carve-out projects, enabling smooth transitions and sustainable growth.