The circular economy (CE) aims to move businesses from a linear model of “take-make-dispose” to a circular one, where products and resources are continuously reused, remanufactured, or recycled. This transition presents significant opportunities for sustainability and innovation but also introduces various risks. Implementing a circular economy strategy requires a clear understanding of the organization’s goals, readiness, and the associated risks, including economic, environmental, social, cultural, and regulatory challenges. Companies must align their business models, supply chains, and stakeholder relationships with circular economy principles to ensure long-term success. The circular economy involves new financing methods, regulatory adjustments, and the promotion of sustainable technologies. Risk management becomes crucial in this complex ecosystem, with strategies that balance environmental, social, and financial outcomes. Adopting circular innovation, modifying business models, and enhancing internal capabilities are key steps to successfully mitigating risks and advancing the circular economy. Legal considerations and strong partnerships are essential for a smooth transition.