⋆
⋆
MAC2602: Principles of Strategy, Risk &
Financial Management Techniques
May/June Examination 2026 — Revision Guide
Based on May/June 2025 & May/June 2024 Past Papers
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
[ Management Accounting — UNISA [
_ Exam Revision Guide
MAC2602
Module Code:
Principles of Strategy, Risk & Financial Management Techniques
Module Name:
May/June 2025 (SASOLZ) & May/June 2024 (MTN)
Papers Covered:
2026 Exam Preparation
Year:
100 marks per paper
Total Marks:
Covers: Strategy & Risk • WACC & Cost of Capital • Capital Budgeting • Working
Capital • Financial Analysis
Exam Revision Notes | MAC2602 | 2026
,MAC2602 | Exam Revision Strategy, Risk & Financial Management
@ PAPER 1: MAY/JUNE 2025 EXAMINATION
SASOLZ (Sasol Limited) Scenario — 100 Marks
Key Concept
Scenario Context: SASOLZ is a South African-based multinational chemicals and
energy company with operations in South Africa, West African States (including
Sierra Leone), the United States, the United Kingdom, and several Asian countries.
The company is listed on the Johannesburg Stock Exchange (JSE) with a 30 April
financial year-end. SASOLZ embarked on gas exploration in the ecologically sensitive
Karoo Region of the Northern Cape during 2025. The company’s loan book value as at
30 April 2025 was R508 000m, repayable in full in six years at 12% p.a. (current market
rate for similar loans: 10%). The company tax rate is 27%.
Page 2 of 26
, MAC2602 | Exam Revision Strategy, Risk & Financial Management
Question 1 (Part A) — Strategy and Risk — [36 marks]
(A1) — [14 marks]
Question: Identify and briefly discuss seven (7) risks affecting SASOLZ’s operations
from the given scenario.
Answer:
Key Concept
Risk is the possibility that actual outcomes will differ from expected outcomes,
threatening an organisation’s ability to achieve its objectives. Risk management
involves identifying, assessing, and responding to these threats.
1. Political/Country Risk: Operations in Sierra Leone (civil-war history) and
other developing nations expose SASOLZ to political instability, expropriation, and
forced nationalisation of assets. Government policy changes can disrupt operations
overnight.
2. Environmental/Sustainability Risk: Gas exploration in the ecologically sensitive
Karoo Region creates serious environmental liability. Fracking or spills can cause
regulatory sanctions, litigation costs, and reputational damage.
3. Health and Safety/Community Risk: Increased cardiovascular and respiratory
diseases among communities near SASOLZ’s refinery create legal liability, reputa-
tional harm, and potential class-action lawsuits, affecting operations in Secunda and
elsewhere.
4. Commodity/Market Price Risk: Volatile crude oil prices (ranging from
$100/barrel down to below $60) directly affect the pricing of finished products
and profitability. This is a significant operating cash flow risk.
5. Exchange Rate/Currency Risk: With offices across multiple time zones and
countries (USA, UK, Asia, Africa), SASOLZ is exposed to foreign currency fluctu-
ations when translating foreign earnings and paying foreign liabilities back to the
South African rand.
6. Interest Rate Risk: The company carries a long-term loan at 12% p.a. while
the current market rate for similar instruments is 10%. Rising rates would increase
refinancing costs; a mismatch between book and market rates affects fair value
reporting.
7. Regulatory/Compliance Risk: Operating across multiple jurisdictions (South
Page 3 of 26
⋆
MAC2602: Principles of Strategy, Risk &
Financial Management Techniques
May/June Examination 2026 — Revision Guide
Based on May/June 2025 & May/June 2024 Past Papers
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
[ Management Accounting — UNISA [
_ Exam Revision Guide
MAC2602
Module Code:
Principles of Strategy, Risk & Financial Management Techniques
Module Name:
May/June 2025 (SASOLZ) & May/June 2024 (MTN)
Papers Covered:
2026 Exam Preparation
Year:
100 marks per paper
Total Marks:
Covers: Strategy & Risk • WACC & Cost of Capital • Capital Budgeting • Working
Capital • Financial Analysis
Exam Revision Notes | MAC2602 | 2026
,MAC2602 | Exam Revision Strategy, Risk & Financial Management
@ PAPER 1: MAY/JUNE 2025 EXAMINATION
SASOLZ (Sasol Limited) Scenario — 100 Marks
Key Concept
Scenario Context: SASOLZ is a South African-based multinational chemicals and
energy company with operations in South Africa, West African States (including
Sierra Leone), the United States, the United Kingdom, and several Asian countries.
The company is listed on the Johannesburg Stock Exchange (JSE) with a 30 April
financial year-end. SASOLZ embarked on gas exploration in the ecologically sensitive
Karoo Region of the Northern Cape during 2025. The company’s loan book value as at
30 April 2025 was R508 000m, repayable in full in six years at 12% p.a. (current market
rate for similar loans: 10%). The company tax rate is 27%.
Page 2 of 26
, MAC2602 | Exam Revision Strategy, Risk & Financial Management
Question 1 (Part A) — Strategy and Risk — [36 marks]
(A1) — [14 marks]
Question: Identify and briefly discuss seven (7) risks affecting SASOLZ’s operations
from the given scenario.
Answer:
Key Concept
Risk is the possibility that actual outcomes will differ from expected outcomes,
threatening an organisation’s ability to achieve its objectives. Risk management
involves identifying, assessing, and responding to these threats.
1. Political/Country Risk: Operations in Sierra Leone (civil-war history) and
other developing nations expose SASOLZ to political instability, expropriation, and
forced nationalisation of assets. Government policy changes can disrupt operations
overnight.
2. Environmental/Sustainability Risk: Gas exploration in the ecologically sensitive
Karoo Region creates serious environmental liability. Fracking or spills can cause
regulatory sanctions, litigation costs, and reputational damage.
3. Health and Safety/Community Risk: Increased cardiovascular and respiratory
diseases among communities near SASOLZ’s refinery create legal liability, reputa-
tional harm, and potential class-action lawsuits, affecting operations in Secunda and
elsewhere.
4. Commodity/Market Price Risk: Volatile crude oil prices (ranging from
$100/barrel down to below $60) directly affect the pricing of finished products
and profitability. This is a significant operating cash flow risk.
5. Exchange Rate/Currency Risk: With offices across multiple time zones and
countries (USA, UK, Asia, Africa), SASOLZ is exposed to foreign currency fluctu-
ations when translating foreign earnings and paying foreign liabilities back to the
South African rand.
6. Interest Rate Risk: The company carries a long-term loan at 12% p.a. while
the current market rate for similar instruments is 10%. Rising rates would increase
refinancing costs; a mismatch between book and market rates affects fair value
reporting.
7. Regulatory/Compliance Risk: Operating across multiple jurisdictions (South
Page 3 of 26
