This paper aims to analysis the impact of financial and business risk on performance in ten industrial sector of Sultanate of Oman. The population is 47 firms from the period 2009 to 2013. The results indicate there is a statistical significant impact of earnings growth at business risk on performance at significant level 5% and current ratio and financial leverage at financial risk on performance at significant level 1%. The multiple regressions show there is a significant impact of all business and financial risk variables on performance at significant level 10%. The stepwise regression also shows that the financial risk related to current ratio variable between all independent variables is a significant impact on performance at significant level 1%. The researcher recommends to promotion exploit the political stability and strong relations with other countries to increase the size of international trade exchange and minimize the risk of investments and encourage local workforce in contributing to the gross domestic product and employment.