A proposed framework to assess and manage risks associated with Agricultural Water Off-farm Conveyance and Distribution Systems (AWOCDS), quantify potential failure due to drought-induced scenarios, and provide short to long-term recovery plans to mitigate drought impacts. It makes an intellectual contribution by creating a new proactive risk assessment focusing specifically on AWOCDS as a crucial part of agricultural water management. The risk assessment comprises two components − risk probability and consequence. The former is calculated by analyzing droughts via the streamflow drought index using the DrinC calculator. The latter is determined through AWOCDS’ performance evaluation using hydraulic simulation via HEC-RAS. Additionally, water distribution is assessed spatiotemporally using adequacy and equity indicators, and an integrated consequence is developed by applying the simple additive weighting method. AWOCDS’ rehabilitation and modernization projects worldwide include three practical practices in its risk management component. These practices involve modifying standard operating procedures (SOPs) by updating maintenance, upgrading manual-based operations, and developing a centralized Model Predictive Controller (MPC) for AWOCDS automatic operation. The proposed framework underwent testing in an arid region. Based on the risk assessment results, the AWOCDS operating system failure rate ranges from 70% to 96% during extreme-severe drought scenarios and 53% to 65% during moderate-mild drought scenarios. Risk management analysis shows that a short-term recovery plan reduces the drought risk by 4% monthly and 3% yearly. However, the risk of failure ranges from 50 to 94% in mild to extreme drought scenarios. Upgrading SOPs decreases impact by 4–11% in extreme, 4–7% in moderate-severe and 7–9% in mild-moderate drought. Automating the operating system with MPC reduces impact by 40–43% and 30–56% in mild-moderate and severe-extreme drought scenarios. This proactive-based strategy can help water managers plan for rehabilitation and improve surface water distribution reliability.