The process of risk, mariagement generally consists of three steps. Does following statement describe the process of nik identifcation, nisk measuresnent, the sefection of a risk management method, or none of these? Determines (1) the method that will manage a speafic nsk-that is, lientify whether it will be avoided, feduced, or accepted-and (2). the risk management device that will be applied to the threat. This refers to the process of: Selection of a risk management method. risk theasurement. risk identification. none of the above. Consider the following case: Thed River Roadways, a U. S, company, hauls freight for Canadian, U.S., and Mexican firms. It currently operates 75 trucks and 300. trabers in all three countries and invoices its customers in their locat currencies. Company management as becoming increasingly concerned with its fik exposures and recentiy expanded the responstalities of the chef financial officer (cro) to indude a risk management function. 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 financlal officer (CFO) to include a risk management function. hich of the following statements regarding Red River's risk management activities are true? Check all that apply. An example of a risk facing. Red River is the foreign exchange risk associated with paying bills and receiving payments in U.5. and Canadian dollars and Mexican pesos. One way to estimate the possible financial consequences of rising fuel prices and driver wages on Red River's profitability is to use spreadsheets and what-if alternative scenario analyses. One method that manages the language, licensing. and operational complexities and risks associated with using non-spanish-speaking divers in Mexico is to subcontract its deliveries to iocal Mexican freight companies. It is more theoretically and financially appropriate to segregate and manoge Red River's risks on a country-specific basis. This means evaluoting its U.S. tisks separately from its Mexican and Canadian risks. The first step in Red River's risk management process involves measuning or estimating the potential effect of each identified risk