Sasol Limited is a c.R145bn international integrated chemicals and energy company. The Company develops and commercializes technologies, and builds and operates facilities to produce a range of product streams, including liquid fuels, chemicals and low-carbon electricity. The Company's operating business units include Mining and, Exploration and Production International. Its Strategic Business Units are energy, base chemicals, performance chemicals and group functions. The Company's regional operating hubs include Southern Africa Operations and International Operations. The Company operates approximately six coal mines that supply feedstock for its Secunda (Sasol Synfuels) and Sasolburg (Sasolburg Operations) complexes in South Africa. It offers market ready fuels and oils, such as bitumen; industrial heating fuels; naphtha and illuminating paraffin transport fuels; automotive lubricants; industrial lubricants; greases; cleansers and degreasers; automotive fuels, and burner fuels. Consider the below risks Sasol faces and answer the following questions..

1) Identify three firm-specific risks that Sasol faces ?

2) Name two types of companies that are likely to provide shareholders with diversification protection from these three risks ?

3) Identify the three macroeconomic or market risks that Sasol faces. Explain why diversification will not help to reduce these risks ?