The risk management process has 8 components. These are internal environment, objective setting, event identification, risk assessment, risk response, control activities, information and communication, and monitoring. 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. The above scenario refers to the process of: Selection of a risk response method Risk assessment Event identification 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. 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. 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 risk management program should not be evaluated solely using a cost-benefit analysis for each feasible alternative. 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. 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