We study the mechanism of wrinkling of suspended graphene, by means of atomistic simulations. We argue that the structural instability under edge compression is the essential physical reason for the formation of periodic ripples in graphene. The ripple wavelength and out-of-plane amplitude are found to obey 1/4-power scaling laws with respect to edge compression. Our results also show that parallel displacement of the clamped boundaries can induce periodic ripples, with oscillation amplitude roughly proportional to the 1/4 power of edge displacement.