Risk is a commonly used term and it is generally appreciated for its negative impacts on our objectives. The Oxford English Dictionary defines risk as “a chance or possibility of danger, loss, injury, or other adverse consequences.” There is no acceptable technical definition of risk because it has undergone numerous changes. The first step was threat management, then the term is expanded to cover the threats and opportunities that organizations face. The last stage which is the management of threats, opportunities, uncertainties and their sources. Uncertainty (Ward and Chapmen, 2003). Therefore, Dowie argues for banning the use of the term "risk" in risk management due to its misleading nature. The definition that will be used in this article is the Australian and New Zealand standard definition, which is “The probability of something happening that will have an impact on the objectives” (Australia/New Zealand Standard, 1999 ).The reasons for using this definition are simplicity and coverage of negative and positive effects on objectives. Risk management has been around for thousands of years (Bernstein, 1996). first introduced in the 1950s by the insurance industry The first textbook published on risk management in 1963 entitled Risk Management and Business Enterprise by Robert I. Mehr and Bob Hedges (D'Arcy and Brogan, 2001). Risk management is an integrated process and the risk manager must help the company's activities The process is constant with its strategies, and what is the relationship between risk management and investment and performance choices. (Nocco and Stulz, 2006). Organizations should develop long-term risk management strategies based on the business environment and shareholders and...... middle of paper ......ment guide 2001. London: White Page.Hodgkinson, R. (2001). Enterprise-wide risk management. Risk Management Guide 2001, London: White Page. Committee of Sponsoring Organizations (COSO), (2004). Enterprise Risk Management – ​​Integrated Framework. New York: COSO.Beasley, M. Clune, R. and Hermanson, D. (2005), Enterprise Risk Management: An Empirical Analysis of Factors Associated with Extent of Implementation. Journal of Accounting and Public Policy. 24.pp. 521-531Kleffner, A., Lee, R., McGannon, B., (2003). The effect of corporate governance on the use of enterprise risk management: Evidence from Canada. Risk Management and Insurance Review 6 (1), pp.53–73. Liebenberg, A., Hoyt, R., (2003). The determinants of enterprise risk management: Evidence from the appointment of chief risk officers. Journal of Risk Management and Insurance 6 (1), pp.. 37–52.