Geothermal energy is a green source of power that could play an important role in climate‐conscious energy portfolios; enhanced geothermal systems (EGS) have the potential to scale up exploitation of thermal resources. During hydraulic fracturing, fluids injected under high‐pressure cause the rock mass to fail, stimulating fractures that improve fluid connectivity. However, this increase of pore fluid pressure can also reactivate pre‐existing fault systems, potentially inducing earthquakes of significant size. Induced earthquakes are a significant concern for EGS operations. In some cases, ground shaking nuisance, building damages, or injuries have spurred the early termination of projects (e.g., Basel, Pohang). On the other hand, EGS operations at Soultz‐sous‐Forêts (France), Helsinki (Finland), Blue Mountain (Nevada, USA), and Utah FORGE (USA) have adequately managed induced earthquake risks. The success of an EGS operation depends on economical reservoir enhancements, while maintaining acceptable seismic risk levels. This requires state‐of‐the‐art seismic risk management. This article reviews domains of seismology, earthquake engineering, risk management, and communication. We then synthesize “good practice” recommendations for evaluating, mitigating, and communicating the risk of induced seismicity. We advocate for a modular approach. Recommendations are provided for key technical aspects including (a) a seismic risk management framework, (b) seismic risk pre‐screening, (c) comprehensive seismic hazard and risk evaluation, (d) traffic light protocol designs, (e) seismic monitoring implementation, and (f) step‐by‐step communication plans. Our recommendations adhere to regulatory best practices, to ensure their general applicability. Our guidelines provide a template for effective earthquake risk management and future research directions.