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

A. Documenting and sharing risk management procedures is an effective way to manage risk. This involves keeping detailed records of how risks are identified, assessed, and mitigated, as well as ensuring that this information is communicated effectively within the organization. By having clear procedures and ensuring everyone understands them, an organization can respond quickly and efficiently to manage risks as they arise.

B. Renouncing changes in government policies is not typically a strategy for managing risk, as changes in government policies are often beyond an organization's control.

C. Transferring risk to vendors, which often involves outsourcing certain functions or purchasing insurance, is also a legitimate risk management strategy. By transferring risk to a third party, a company can protect itself from financial losses resulting from certain risks.

D. Storing large amounts of cash on company premises is generally not considered an effective risk management strategy, as it can make the business a target for theft and does not protect against other risks such as market fluctuations or operational failure.

E. Investing in the share market can actually introduce additional risk into a company's portfolio rather than managing existing risks. The share market is subject to volatility and can result in financial losses if not managed carefully.