{"id":2003,"date":"2023-12-19T19:56:19","date_gmt":"2023-12-19T16:56:19","guid":{"rendered":"http:\/\/3.64.217.70\/?page_id=2003"},"modified":"2025-12-19T18:51:16","modified_gmt":"2025-12-19T15:51:16","slug":"risks","status":"publish","type":"page","link":"https:\/\/www.bluefinancegroup.com\/fi\/risks\/","title":{"rendered":"Riskit"},"content":{"rendered":"\t\t
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Key Risks Related to Investments<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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On this page, we comprehensively outline both the risks associated with Blue Finance Ltd. and those pertaining to investors.\u00a0<\/p>

We also discuss how the Company manages risks and endeavours to protect itself from potential risk factors. We hope that this information assists our investors in forming a realistic view of Blue Finance Ltd.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"\"\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Business-Related Risks<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tCredit Loss Risk<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

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.<\/p>

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Management<\/strong><\/h6>

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.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tLiquidity Risk<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

Liquidity risk, or the risk to the company’s short-term solvency, essentially means that even though the company generates profit and has more receivables than liabilities, the cash on hand may not be sufficient to meet immediate payment obligations. This risk mainly applies to situations where a significant number of loan applications are received in a short period or, alternatively, a significant number of investment redemption notices are received in a short period, and cash reserves are insufficient to meet all immediate obligations.<\/p>

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Management<\/h6>

The company has several ways to maintain good liquidity and sufficient cash reserves. On the financing side, anticipation involves the regular sale of uncertain receivables and the use of debt financing to supplement equity financing. Financing agreements used for the sale of uncertain receivables also allow for the sale of certain receivables, which immediately replenishes cash reserves. A diversified and varied financing base significantly reduces risks associated with B\/C\/E\/F & G shares or debt financing. On the business side, anticipation is evident in the anticipation and planning of marketing activities, allowing for preparation for the growth of customers and loans.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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The company operates in a tightly regulated industry, and its operations are affected by changes in legislation related to interest rates, lending, securities markets, and taxation. These changes, as well as risks related to the political operating environment, can hinder the company’s business.<\/p>

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Management<\/h6>

Key management measures for legislative risk include geographical diversification of the product portfolio as well as consumer and corporate loans. The company closely monitors developments in industry legislation and seeks to anticipate and adapt to potential changes.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tCOVID-19 Related Risks<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

The COVID-19 pandemic has significantly affected the general economic situation, which may have weakened customers’ solvency. At the same time, legislative risk has become more difficult to predict than before. If during normal times changes in legislation or other key guidelines take a year or more, during the pandemic legislation has changed in a matter of weeks.<\/p>

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Management<\/h6>

The company’s key tools for responding to rapidly changing market conditions are high-performance and flexible technical systems and clear processes for implementing significant product changes in a very short time. The increased credit loss risks due to the pandemic have required an expansion of the assessment of customers’ creditworthiness and ability to pay. It is essential to obtain as up-to-date information as possible on each customer’s actual financial situation. The company has therefore introduced real-time assessment tools and data sources enabling real-time financial situation assessment combined with traditional mathematical models.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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Business always involves risks, and we must be prepared to face uncertainties. We cannot guarantee that our operations will always be profitable or that our cash flow will always be positive.<\/p>

Potential credit losses can affect our financial situation, and fluctuations in market interest rates can affect our business and results.<\/p>

Management<\/strong><\/span><\/p>

We invest in long-term planning and focus on developing products and services that meet our customers’ needs and are also financially viable.<\/p>

The financial situation is closely monitored daily, and information on the balance sheet and income statement is regularly shared with our stakeholders so that they can have a comprehensive understanding of our financial situation.<\/p>

The reporting of financial information is overseen by an external auditor, Advico Ltd., which belongs to the international audit firm Grant Thornton. This ensures transparency and reliability of financial information.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tFinancing Risks<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

The company’s operations involve risks related to financing, and it is possible that the company may not be able to obtain the necessary financing on favourable terms or even at all. There is also a risk that the company’s current sources of funding may not be available in the future, which may require seeking new forms of financing.<\/p>

Management<\/strong><\/span><\/p>

The company continuously monitors the development of its business and its financing needs. The company actively engages in dialogue with both current and potential financiers, aiming to ensure that various financing options are available when needed.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t