In recent years many software organizations started adopting agile processes for developing the software product in order to deliver better quality product in lesser cost and duration. Most of the client prefers incorporating agile approaches in their product development. The major reasons behind this are higher customer satisfaction, short releases, frequent feedback and ability to incorporate requirement changes even in the later stage of the development. Like any software projects, risks are most common factor exists even in agile based projects which might determine the success or failure of software development. This paper focuses on managing the risk factors that influence the performance of agile development using Ontology model. The study is based on the inputs derived from various sources like conducting in-depth interviews among software practitioners, analysis of twenty six various completed project documents from ten different software Organizations and various professional bodies such as PMBOK, SWEBOK and IEEE Computer Society. Based on the inputs the risks are categorized and risk ontology is created. This automated approach benefits the users to identify the possible risks for a given project, track the sources of risks and its dependency among them and also helps to efficiently manage the risks. The proposed model has been evaluated based on the two performance metrics, Usability Goals Achievement Metric (UGAM) and Index of Integration (IoI). The analysis proves that the proposed model achieved better results in terms of satisfaction level among product users and software professionals. © 2018, Institute of Advanced Scientific Research, Inc.. All rights reserved.