The digital transformation of energy systems through smart grids has improved efficiency, sustainability, and service delivery. However, integrating IoT devices, AI, and advanced metering infrastructure has also introduced complex cybersecurity challenges. This paper addresses the critical need for resilient cybersecurity measures to protect smart grids from emerging threats, including ransomware, data breaches, and grid manipulation. Focusing on proactive risk management, the chapter explores strategies to secure grid communication protocols and mitigate vulnerabilities in Advanced Metering Infrastructure (AMI). Smart grids can quickly identify and neutralize threats by leveraging AI-driven threat detection and response mechanisms. Case studies of cyber incidents impacting smart grids highlight the importance of resilient designs and robust security policies. The paper concludes with actionable recommendations for fortifying smart grids to ensure uninterrupted service delivery and system stability in the face of evolving cyber threats.