Are there risks that cannot be overcome by traditional approaches to software development ?

Is the behavior of decision makers using a methodology a key factor in overcoming risks in software development?

Are there risks that cannot be overcome by traditional approaches to software development ?
I've worked in software development for 14 years and the choice of development methodology is CRITICAL to the success of the project. But more over, it's important to match your approach to match the abilities of your team. Previously, in higher skilled and self motivating environments I've implemented a more agile method; empowering the developers to be the owners of a particular element within the development. At present, however, I'm in an environment where there is resistance and low motivation (and a lot of time wasting) so I'm having to use a carrot and stick approach of milestones and tasks. Not fun.