Software project management techniques and business methodologies have been developed from practices in the Information Technology industry to ensure a high rate of success with the given deadlines. These techniques have been adopted by almost all the top firms to ensure a lucrative and efficient solution to a problem. Moreover, the size of the project management team and model embraced to ensure success depends on the nature of the project. Agile development model using agile teams are one way of solving these complex problems in a flexible way, this development model is gaining popularity at a tremendous rate, especially among small companies comprising of limited members in a team. Therefore, this paper reviews the main challenges in an agile development environment and the methods employed to overcome these risks and challenges.