Risk is a commonly used term and is usually appreciated because it has a negative impact on our goals. The Oxford English Dictionary defines risk as “a possibility or possibility of danger, loss, injury, or other adverse consequence.” There is no acceptable technical definition of risk as it has gone through many developments. The first phase covered threat management, only later is the term extended to cover the threats and opportunities facing organizations. The last phase which is the management of threats, opportunities, uncertainties and their sources. Of uncertainty (Ward and Chapmen, 2003). Therefore, Dowie argues that the use of the term "risk" in risk management is prohibited because it is misleading. The definition that will be used in this document is the Australian/New Zealand standard definition, which is “The possibility of something happening that will impact the objectives” (Australia/New Zealand Standard, 1999). The reasons for using this definition are simplicity and coverage of negative and positive effects on goals. Risk management has been practiced for thousands of years (Bernstein, 1996). The term risk management was first introduced in the 1950s by the insurance industry. The first textbook published on risk management in 1963 entitled Risk management and the Business Enterprise by Robert I. Mehr and Bob Hedges (D'Arcy and Brogan, 2001). Risk management is an integrated process and risk management must assist the company's business process are consistent with its strategies, and what is the relationship between risk management and investment choices and performance (Nocco and Stulz , 2006). Organizations should develop long-term risk management strategies based on the business context and stakeholders 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 Scope 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. Risk Management and Insurance Review 6 (1), pp. 37–52.