The theory of administrative risk in administrative contracts is one of the oldest theories. This is because it deals with the financial imbalance of administrative contracts while implementation. It originated from administrative judiciary, which is the source of many other theories dealing with financial imbalance of administrative contracts. The methodology of this research required dividing this paper into an introductory preface and three main chapters. The preface introduces the definition of the financial balance in administrative contracts and its origin. The first chapter defines the theory of administrative risks and distinguishes it from other theories. The second chapter identifies the terims and conditions of applying the theory of administrative risks. The third and final chapter deals with the effects of implementing the administrative risks theory. The research concludes with the most important results and recoinmendations by the researcher in order to contribute to the legislations governing the implementation of administrative contracts especially in the Sultanate of Oman, in the hope that specialists will consider them.