ABSTRACT: Improving the management of risk in Australian cities is important to long term sustainability of urban economies. As our urban and regional economies become more integrated into the global economy, the management of risk will become more complex. As a society, we face difficult choices about what types of risks to our urban economies to manage, who should be responsible determining an acceptable level of risk exposure, and the most appropriate strategies and measures to manage risk. The challenge to us all is to decide which risks we need to manage and which risks we should disregard. This paper examines the nature of risks affecting Australian cities and describes a technique to Multi sector Risk Attribute Analysis used to measure and evaluate multiple risks which have the potential to impact on cities. Two case studies applying the technique: Cairns and ACT regional economies are presented, followed by a framework used to develop sector industry risk management plans. Critical issues for improving urban economic risk management in Australian Cities are discussed.