• Massmart is an African retail and wholesale group with widely recognised and differentiated formats, represented in 408 stores in 13 sub-Saharan countries. It has leading market shares in the general merchandise, liquor, home improvement and wholesale food markets. Its key foundations of high volume, low cost, responsible business and operational excellence enable its price leadership. For more information about the organisation visit: https://www.massmart.co.za/. QUESTION ONE [100 MARKS] As a risk management student, you have been allocated a research task by your lecturer Mr Goorah and you are expected to submit a detailed report paper at the end of the semester in which you are expected to address the following questions relating to Massmart. 1.1 Critically discuss the nature of risks that Massmart has been exposed to between the years 2019 to 2023 within its markets. Your response should provide practical examples and illustrations. (20 marks) 1.2 In light of the risks provided in (question 1.1) examine their impacts to Massmart and provide recommendations on how these could be handled in the future to reduce the potential losses. (20 marks) 1.3 Evaluate the appropriateness of the Monte Carlo simulation in analysing risks for Massmart and the retail sector (20 marks) 1.4 Considering the line of business of Massmart, critically discuss how the organisation has embraced risk management into its corporate structures and examine if it has done enough to prioritize risk management (20 marks) 1.5 The CEO of Massmart Mitchell Slape has requested you to include a section in your report in which you address how hedging is used in reducing risk exposures and whether it should be applied at Massmart. Discuss the contents of your response to him. (20 marks