Study Of Supply Chain Risk Management Model Based On The Business Interruption Insurance

A variety of emergencies and disasters(fire,earthquakes,floods,etc.)are more and more frequently impacting on the supply chain,and the supply chain globalization further exacerbates the supply chain risk,especially supply risk.In China's small and medium-sized listed companies(a total of 743)of the prospectus risk statistics,there are 65% of the enterprises to declare their purchases face the uncertain risk from the supply side.As an important means of risk management,business interruption insurance has been effectively applied in practice.Therefore,it is of great significance to pull business interruption insurance into the supply chain risk management for studying in the light of the increasing supply chain risk.At the same time,the application of business interruption insurance in supply chain risk management is an important opportunity for combining operation with finance.Business interruption insurance refers to the insurance,which provides guarantee for economic losses of enterprises(the insured)due to natural disasters or accidents,in a period of time to stop production,business or business affected.From the perspective of supply chain risk management and combination of operation and insurance,this paper studies the value of the business interruption insurance to the supply chain risk management and the premium rate decision of the insurance company.The first chapter mainly introduces the background and significance of the research.The second chapter combs the related literature and points out the value of this study.In the third chapter,under the deterministic market demand,we considered a supplier transferred the risk through the business interruption insurance,and by depicting a supply chain model with the supplier,retailer and insurance company involved in the game and comparing this model with the baseline model without the insurance,we explored interactions of the supply chain with the business interruption insurance and the problem of premium rate.In the fourth chapter,we extend the research to the more realistic stochastic market demand,and discuss whether the conclusion of the third chapter is still in the case of uncertain market demand.The fifth chapter draws the conclusion by synthesizing the results of the third chapter and the fourth chapter and puts forward the research prospect.The research shows that: whether the market demand is deterministic or stochastic,the insuring can achieve a tripartite win-win situation after the insurance company makes a reasonable rate by weighing the premium investment income rate and risk.Not only have profits of supply chain members been increased,but also the insurance company can benefit,and the supply chain cooperation and application of insurance promote each other.This study illustrates the value of the business interruption insurance for enterprise and supply chain risk management and provides decision-making reference and management enlightenment for companies to buy business interruption insurance,and also has important implications for the insurance company to carry out the insurance business.Now the Chinese government is vigorously promoting the real economy to combine with finance,this study provides a theoretical basis for the combination of supply chain(the real economy)and insurance(finance)in the risk management.