Czech businesses are lagging behind their western counterparts in taking advantage of risk management products. The number of tools to reduce credit risk is growing, yet most small- and medium-sized businesses (SMEs) remain ignorant of the need to guard against nonpayment, say risk management experts. Most large domestic companies cover their exposure with credit insurance, or insurance against the risk of nonpayment, and the Czech credit insurance market is growing by 25 per cent annually, according to Markéta Strћínová, managing director of credit insurer Atradius Credit Insurance. Yet the companies that need protection the most aren’t even looking for it. SMEs in the manufacturing sector, whose overhead and operational costs tend to be high, cover only a fraction of their credit exposure compared with their competitors in older EU member countries.
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