Risk of losses on trade and other receivables

The risk that the Group’s customers fail to meet their payment obligations for accounts receivable constitutes a customer credit risk.

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Inwido reduces counterparty risks relating to customers by applying the Group’s credit policy. Credit checks are performed on the Group’s customers with information regarding their financial status being obtained from various credit information agencies. The risk of credit losses is also limited through credit insurance, which covers the majority of Inwido’s insurable receivables. Bank guarantees or other sureties are required of customers with low credit ratings or insufficient credit history. Trade and other receivables are subjected to on-going age analysis. The assessment of credit risk is primarily managed by each subsidiary. As per the balance sheet date, there were no significant concentrations of customer credit exposures. See Note 2, Inwido Annual Report 2018.