Q 152: What does the following statement of the Prophet (Peace be upon him) mean: "And all the goodness is in Your Hand; and the evil is not (attributed) to You”?
A--- This means that all the Acts of Allah the Almighty are pure and absolute good as they are attributed to Him and emanate only from Him.
They have no relation to evil. As Allah the Almighty is All Wise, All Just, and all His Acts are Wisdom and Justice. He settles everything in their proper locations. Whereas, were there any degree of evil included in the ordainment, it would be on the part of the slave whom may be inflicted with destruction due to what he has earned himself, in just and full measure. Allah the Almighty says: {And whatever of misfortune befalls you, it is because of what your hands have earned. And He pardons much}. (Ash-Shura, 30)
Allah the Almighty says: {We wronged them not, but they were the Zalimun (polytheists, wrongdoers)}. (Az-Zukhruf, 76)
Allah the Almighty says: {Truly! Allah wrongs not mankind in aught; but mankind wrong themselves}. (Yunus, 44)
Reference: 200 FAQ On Muslims Belief - Shiekh Hafiz Ibn Ahmed Al Hakami