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FINANCIAL STATEMENTS, MANAGEMENT AND CORPORATE GOVERNANCE REPORT.
2011
8.3 Risk management policy
The Company’s operations are exposed to different basic categories of financial risk:
1.
Credit risk
Credit risk exists when a potential loss may arise from the Company’s counterpar ty not meeting its contractual obligations,
i.e., the possibility that financial assets will not be recovered at their carrying amount within the established timeframe.
The Company’s maximum exposure to credit risk at 31 December 2011 and 2010 was as follows:
Thousands of euros
2011
2010
Non-current receivables from Group companies and associates
7,145
115,797
Non-current financial investments
5,902
5,683
Trade and other receivables
200,860
155,576
Current receivables from Group companies and associates
191,605
117,482
Current investments
53,468
26,587
Cash and cash equivalents
11,043
27,534
470,023
448,659
For the purposes of credit risk management the Company differentiates between financial assets arising from operations
and those arising from investments.
Operating activities
Most of the balance of trade payables consists of operations with Group companies that, therefore, do not present a risk.
The breakdown of trade receivables at 31 December 2011 and 2010 was as follows:
2011
2010
Number of
customers
Thousands of
euros
Number of
customers
Thousands
of euros
With a balance of more than 1,000 thousand
euros
6
178,355
5
146,709
With a balance between 1,000 and 500 thousand
euros
7
3,735
4
2,549
With a balance between 500 and 200 thousand
euros
12
2,824
9
3,116
With a balance between 200 and 100 thousand
euros
12
1,694
11
1,384
With a balance of less than 100 thousand euros
231
2,046
65
760
Total
268
188,654
94
154,518
The Company constantly monitors the age of its debt, and there were no risk situations at year-end.