In this study, we investigate the relationships amongst risk mitigation, risk hedging and project management within the construction SME sector in Iraq; however, we focus on the mediating role of internal control. The project collected data from a self-administered survey conducted using a stratified random sampling strategy with 251 SME employees. By confirming using the technique of electronic equation modelling (Smart-PLS), the results indicate that there is a strong positive effect on internal control and project management from risk reduction as well as risk hedging. We show Internal control was found to partially mediate the relationship between risk reduction and risk hedging with project management. The findings have implications for internal control because the effectiveness of internal control is positively related to effective project management performance in Iraqi construction SMEs. In this research, the integration of risk management strategies in construction project management is emphasized in order to foster cost savings, revenue growth, quality improvement, and project success. Hence, the value of such research in understanding the dynamics of the construction project management process.