Question

Which strategy is an effective way to manage risk? A. documenting and sharing risk management procedures B. renouncing changes in government policies C. transferring risk to vendors D. storing large amount of cash on company premises E. investing in share market

Answer 1

Answer:

A

Explanation:

Answer 2

Transferring the risk to vendors is a best strategy to manage risk.

Option - C

Explanation:

In the category of finance, risk management takes place everywhere. It happens if an investor buys Treasury bonds over corporate bonds from the United States if a fund manager covers his monetary exposure with monetary derivative products and when a bank checks a person before issuing a personal credit line.

To efficiently manage risk, share brokers use alternatives and financial tools, as well as the brokerage and investment diversifying strategies used by investment managers.

The risk of losses can be a number of ways shifted from one organization to another organization. All transition strategies fell into three basic groups,

• Insurance(Insurance contract passes to a policyholder)
• Judicial(transfer by successful legal action to another party)
• Contractual(Transfer to a party other than insurance under contracts)