Risk Changes and Prevention in the Innovative Development of Supply Chain Finance

Abstract

With the increasing segmentation of social production, the nature of market competition has evolved, shifting from competition among individual customers within a supply chain to competition between entire supply chains. In recent years, supply chain finance has been widely applied in various sectors, effectively addressing the financing difficulties faced by small- and medium-sized enterprises (SMEs) in the supply chain. In this environment, the development of supply chain finance has received significant attention. To encourage its development, government agencies can leverage their macro-guidance capabilities, introduce relevant measures based on the actual situation, and require banking and insurance institutions to rely on core supply chain enterprises. By treating the transactions of core enterprises and their upstream and downstream partners as the foundation, financial institutions can integrate various types of information and provide comprehensive financial services to all participants in the supply chain. However, during the process of innovation and development in supply chain finance, various risks inevitably arise. These risks must be managed and mitigated through different risk management strategies to enable supply chain finance to better serve the real economy and promote its sustainable development.