Risks are an integral part of human activity, whatever its nature, and the risks have continued to increase with the diversity of economic activities, and have even become an inherent characteristic of contemporary economics, the study is based on the effectiveness of the sustainable development theory.
The study aims to adapt the theory of risk as a mechanism of good governance in the effectiveness of environmental accounting and develop solutions and proposals to address it, through measurement and disclosure of the extent of the institution's commitment to legal requirements to avoid the causes of pollution of land, air, water, noise, that is, its contribution to achieving sustainable development.
The researcher used the descriptive analytical method, which expresses the impact of risk theory on the effectiveness of environmental accounting. The study relied on profitability ratios (profit margin on sales, return on assets, and return on equity).
Through the results of the statistical analysis, it is clear to us that there is an impact of the risk theory on the effectiveness of environmental accounting to identify or avoid risks by adapting the risk theory to the effectiveness of environmental accounting and to contribute to achieving sustainable development.