Due to the global business environments and severe competitions, SMEs have carried out IS projects for their competitive advantages. However, numerous organizations have faced with difficulties in the IS project management such as large amounts of IT expenses and uncertainties in project implementations. Thus, this study is intended to discover critical risk factors in the IS project management. To achieve this research goal, we have mailed questionnaires to SMEs and SI companies that experienced IS project failures and 63 usual data were collected. The result of analysis with step wise regression showed that 6 factors are related with IS project failures. The study contributes to the literature in two ways. First, this paper empirically identifies IS risk factors for SME manufactures. Second, this research result can be utilized as a checklist for the successful IS implementations. Limitations and future research topics are also discussed.