Entering into the 75th year of Independence, Indian agriculture has been shifting its focus towards alleviating the conditions of farmers to make them agri-preneur. For this purpose, Farmer Producer Organisations (FPOs) are being projected as one of the potential institutions. When the clusters of farmers are brought together as part of a producer organization, their collaborative strength opens up opportunities for rapid growth and development. However, every enterprise faces certain challenges and risks i.e., ecological, financial, managerial, technological, and weather which pose serious financial as well as physical threats. Thus, it has become crucial to study risk perception, especially among members of the FPOs for better decision-making and optimal use of resources among farmers. The present study has revealed the risk perception elucidated by the FPO members that included 100 respondents representing two FPOs, 50 from each FPO operating in the Nayagarh district of Odisha. The statistical tools used for data analysis are; Correlation coefficient, Stepwise regression analysis, Path Analysis, Factor Analysis, and Canonical Covariate Analysis. The R square value obtained in the regression analysis was 47.20 per cent and four out of twenty-four independent variables were retained in the last step of step-down regression analysis. The variable size of holding has got the highest indirect effect on risk perception as evinced by the path analysis. This paves the way for replicating this kind of the studies to have a better understanding of major policy revelations across the horizons of agro-climatic zones.