Sasol Risks

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Added on 2021-06-14

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The three major risks that are faced by Sasol are as follows- The risk of a major health, environmental or safety event that is undesirable and can lead to the casualty or liability occurring: the operations of the company are vulnerable to various health and safety risks. The three major macroeconomic risks that are faced by Sasol are- New Legislations- in South Africa, where the maximum operations of Sasol are carried out, the constitution still keeps changing, especially in the context of Consumer Protection Act

Sasol Risks

Added on 2021-06-14

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Part 1 of 2...................................................................................................................................2Part 2 of 2...................................................................................................................................6References..................................................................................................................................7Part 1 of 21.Identify three firm-specific risks that Sasol faces.

The three major risks that are faced by Sasol are as follows-The risk of a major health, environmental or safety event that isundesirable and can lead to the casualty or liability occurring: theoperations of the company are vulnerable to various health and safetyrisks. These risks need to be mitigated to achieve sustainable andcompetitive growth. Risk of the ever changing dynamics of global competitiveness: thecompany supplies its products in the global markets and thus, faces thethreats from other global competitors. The variations in the costs oflabour, feedstock, energy and logistics affect its global competitiveness. Risk of the major unplanned interruptions in production which impact theintegrated value chain of Sasol: the growth ambitions of Sasol rely on itsability to generate cash out of its current production assets for its newprojects. If the production of the company is not obtained as per the plan,it may affect its ability to execute the new projects. This may further leadto supply chain interruptions, labour unrest and strikes and disruptions inthe supply of water and electricity [CITATION San16 \l 16393 ]. 2.Name two types of companies that are likely to provide shareholders with diversification protection from these three risks. The two types of companies that are likely to provide shareholders with diversification protection from the 3 risks discussed above are as follows:Public Limited Company: This is because public limited company can

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