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Climate risk management in the semi-arid tropics (SAT) is one of the major challenges to achieving food security and development in India and large parts of sub-Saharan Africa and also in the case of Australia. Climate-induced production risk associated with the current season-to-season variability of rainfall is a major barrier in making rainfed agriculture sustainable and viable farm business. Since season outcomes are uncertain, even with the best climate information, farmers have limited flexibility in applying management with confidence. In fact in risky environments, farmers most often respond by adapting a risk averse strategy and are reluctant to invest in even risk reducing measures (Leathers and Quiggin 1991). In the SAT agro-ecologies, there are a limited range of enterprise or crop options to consider which may be further restricted by cultural traditions, food preferences or market opportunities.While there are fundamental differences between large scale commercial farms in Australia compared to the predominantly smallholder resource poor farms found in India, when it comes to climate risk management in the SAT, there are many commonalities. The purpose of this paper is therefore to (i) establish a framework for managing climate variability and transforming farming systems to be more resilient and sustainable for future climates; and (ii) provide some case study examples from climate risk management in low rainfall cropping system in Australia and consider how they may be applied in smallholder systems of the SAT.