SAP carve-out projects are crucial for enterprise transformation, allowing businesses to remove specific entities, divisions, or functionalities from their existing SAP environment. However, these projects also present potential risks such as data integrity issues, compliance breaches, operational disruptions, and financial discrepancies. Without robust risk management strategies in place, organizations risk facing costly setbacks and reputational damage. Key strategies for risk management include conducting a comprehensive risk assessment, establishing a clear governance framework, implementing robust data management practices, continuous monitoring and reporting, and engaging stakeholders. A thorough risk assessment involves identifying and analyzing potential risks across all facets of the project, including data migration, system integration, and stakeholder alignment. By understanding the specific risks inherent in the carve-out process, organizations can proactively mitigate them before they escalate into critical issues. A clear governance framework is essential for ensuring accountability and transparency throughout the carve-out project. This framework should define roles, responsibilities, and decision-making processes, enabling effective risk oversight and mitigation. Centralizing governance structures can streamline communication channels and facilitate timely risk responses. Robust data management practices, such as cleansing, validation, and reconciliation processes, can mitigate the risk of data inaccuracies and inconsistencies. Leveraging data archiving solutions can optimize storage resources and enhance data accessibility while reducing compliance risks. Continuous monitoring and reporting provide stakeholders with visibility into project performance and enable informed decision-making. In a case study, a multinational corporation undergoing a divestiture of its subsidiary successfully identified and addressed potential data integrity issues early in the project lifecycle through meticulous data validation and reconciliation processes. Clear governance structures facilitated decision-making and stakeholder alignment, enabling the project team to navigate complexities effectively and achieve a successful carve-out outcome.