Yes, you can. X has networking built right in. This manpage has some (but not lots) of info on the subject:
To tell the truth, I have found the documentation for this task to be sadly lacking...
If so, how and what are my risks?
I don't think security is very tight for remote X. So: do not make this available over the internet (unless you have a VPN or something), but if it is only vailable to a private LAN then the risks are less.