A Study On The Risk Management Of Xiben Shinkansen’s Financial Services In The Supply Chain

ABSTRACT:For a long time, problems of low credit rating and financing difficulties faced by the SME (small and medium-sized enterprises) have been prominent, and have even become a bottleneck restricting the sustainable development of enterprises. With the gradual improvement of modern enterprise systems, new financing models continue to rise, and supply chain finance is one of them. Relying on the overall strength of core enterprises in supply chain, supply chain finance changes the traditional single credit model between banks and enterprises, and plays an important role in solving financing difficulties, enhancing credit level and promoting sustainable management. However, along with the increase of business and growth of market, how to measure accurately the credit risk of supply chain finance has become the overarching concern of core enterprises. It has great significance in further improving finance model of supply chain and in effectively preventing and controlling credit risk.This paper takes Xiben Shinkansen, a core e-commerce company in supply chain, as an example. On the basis of analyzing the current finance model and risk points of this company, financial services risk evaluation index system of core enterprises has been designed, and empirical analysis about financial services risk has been done through logistic regression model. Thus, there is a quantitative measure of the probability of compliance in both the supply chain finance model and non-supply chain finance model. The finally founding is that under the condition of supply chain finance model, the average probability of compliance of both upstream and downstream enterprises is81.81%, and the relatively smaller the risk of financial services in Xiben Shinkansen; while under the other condition, the average probability of compliance is only13.97%. It indicates that the supply chain finance model can effectively enhance the credit level of SME, which provides an empirical basis for Xiben Shinkansen to effectively control financial services risk and for banks to make right decisions.