Large-scale engineering projects are characterized by significant risks due to their inherent complexity, extended timelines, and substantial financial investments. Effective risk management is essential for ensuring successful project outcomes. This paper critically examines both traditional and modern risk management methodologies, focusing on their practical application within large-scale engineering environments. Through in depth analysis of case studies, including the Panama Canal Expansion and the Burj Khalifa, this paper demonstrates how the integration of qualitative, quantitative, and AI-driven approaches can significantly enhance risk identification, assessment, and mitigation. The findings emphasize the importance of a holistic approach to risk management one that is both adaptive to evolving challenges and proactive in anticipating potential threats. This paper contributes to the field by bridging the gap between conventional practices and emerging technologies, offering a comprehensive and innovative framework for managing risks in complex engineering projects, thereby improving their resilience and likelihood of success.