Chemical Company of Malaysia Berhad Annual Report 2019

25. Financial instruments (continued) 25.2Net gains and losses arising from financial instruments   Group   Company 2019 2018 2019 2018 Net gains/(losses) on: Financial assets at amortised cost (2,563) 4,151 2,479 4,973 Financial liabilities at amortised cost (10,561) (21,071) (6,834) (17,803) Equity instruments designated at fair value through other comprehensive income: - recognised in other comprehensive income (10) 14,053 - 14,021 - recognised in profit or loss 4 6 - - Financial asset at fair value through profit or loss: - mandatorily required by MFRS 9 3,244 4,230 604 2,955 (9,886) 1,369 (3,751) 4,146 25.3Financial risk management The Group has exposure to the following risks from its financial instruments: • Credit risk • Liquidity risk • Market risk 25.4Credit risk Credit risk is the risk of a financial loss if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Group’s exposure to credit risk arises principally from the individual characteristics of each customer. The Company’s exposure to credit risk arises principally from loans and advances to subsidiaries. There are no significant changes as compared to prior periods. | Notes to the Financial Statements (continued) | 188 CHEMICAL COMPANY OF MALAYSIA BERHAD