The process of risk management generally consists of three steps. Does following statement describe the process of risk identification, risk measurement, the selection of a risk management method, or none of these? Determines (1) the method that will manage a specific risk-that is, identify whether it will be avoided, reduced, or accepted-and (2) the risk management device that will be applied to the threat This refers to the process of: Risk measurement Risk identification Selection of a risk management method None of the above Consider the following case: Red River Roadways, a U.S. company, hauls freight for Canadian, U.S., and Mexican firms. It currently operates 75 trucks and 300 trailers in all three countries and invoices its customers in their local currencies. Company management is becoming increasingly concerned with its risk exposures and recently expanded the responsibilities of the chief financial officer (CFO) to include a risk management function. Which of the following statements regarding Red River's risk management activities are true? Check all that apply The fact that Red River has borrowed funds using fixed-rate peso-denominated loans in Mexico, fixed-rate Canadian dollar-denominated loans in Canada, and floating-rate U.S. dollar loans in the United States has not created any foreign exchange or interest rate risk for the company Red River's trucks and trailers are exposed to physical and liability risks when operating on the road. One method that manages these risks is to purchase commercial insurance for the trucks, trailers, and their customers' cargo Red River's risk management program should not be evaluated using a cost-benefit analysis for each feasible alternative One risk facing Red River is the potential for a countrywide or even worse, worldwide recession, which would reduce both the volume of goods being shipped and the demand for Red River's services. Among the personnel risks to which Red River is exposed are damages to Red River's trucks and trailers or employee caused damages to customers' cargo