The most important risk of loss in the operations of both Blue Finance and all other credit institutions is related to credit losses. Therefore, credit loss risk management is one of the most important areas of business. Initially, credit loss risk is taken into account in the pricing of products, meaning that the price of products is set at a level that allows for sufficient profit after operational expenses, financing costs, and credit losses. Due to the large number of customers and granted credits, the proportion of credit losses in the total credit portfolio remains relatively constant.   Management Credit loss risk is managed through customer-specific creditworthiness assessments. Before making a credit decision, the customer’s creditworthiness and ability to pay are verified. In addition to credit and payment default records, factors such as the customer’s income and information on other loans are also checked. The customer’s actual ability to pay is carefully assessed based on the overall picture. Diversification of the credit portfolio across a wide range of customers reduces credit loss risk. Credit loss risk is also managed through the regular sale of uncertain loan receivables to collection agencies, freeing up capital and limiting the risk associated with individual loans.