A method and a system for managing loads on a wind turbine are provided. The method includes receiving a signal relative to a yaw misalignment of the wind turbine, generating a yaw error signal based on the yaw misalignment, and comparing the yaw error signal to a first predetermined yaw error threshold value. The method also includes regulating a speed of the rotor to a value determined by a predetermined tip speed ratio, reducing the yaw misalignment using a yaw control system, and restarting the wind turbine if the yaw error signal is reduced to less than a second predetermined yaw error threshold value within a predetermined period of time. The method further includes shutting down the wind turbine if the yaw error signal remains greater than the second predetermined yaw error threshold value beyond the predetermined period of time.