Abstract: The digitalization of tax administration in Rwanda is currently hampered by a 16% technical failure rate within the systems themselves. This study examined the influence of risk management practices on performance of Electronic Billing Machine Version 2.1 Project in Nyaruguru District. A descriptive and correlational research design was adopted using both quantitative and qualitative approaches. The study population consisted of 753 individuals directly associated Electronic Billing Machine Version 2.1 in Nyaruguru District. Thereafter, simple random sampling was applied within each stratum to select the proportionally allocated to 261 sample size. The coefficient results showed that risk identification had a positive and significant influence on performance of Electronic Billing Machine Version 2.1 in Nyaruguru District (B = 0.190, t = 4.6341, p = 0.000), risk analysis had the strongest positive and significant influence (B = 0.425, t = 9.8837, p = 0.000), risk mitigation also had a positive and significant influence (B = 0.163, t = 4.4054, p = 0.000), and risk monitoring had a positive and significant influence (B = 0.213, t = 4.9535, p = 0.000). The study concluded that risk identification, risk analysis, risk mitigation, and risk monitoring significantly improve the performance of Electronic Billing Machine Version 2.1. The study recommended that Rwanda Revenue Authority should strengthen systematic risk analysis and continuous monitoring mechanisms to ensure timely detection, prioritization, and response to risks affecting Electronic Billing Machine Version 2.1 in Nyaruguru District.