A Simple Survey for Supply Chain Finance Risk Management with Applications of Blockchain

Abstract

Supply chain finance (SCF) is an important solution that optimizes cash flow in order to lower financing costs and improve business efficiency especially for small and medium-sized enterprises (SMEs). Risk management is the essential requirement of SCF. In recent years, the digital economy is developing rapidly worldwide and holds huge potential for entrepreneurs and SMEs. In the digital economy scenario, digitalization of supply chains is also becoming increasingly dynamic. Blockchain technology is regarded as a potential means of digitalization for supply chains and could play an important role in supply chain finance risk management. This paper first reviews the literature of supply chain finance risk management and provides some disadvantages of traditional supply chain finance risk management. Then we survey the new perspective for supply chain finance risk management based on blockchain technology. In particular, blockchain can increase the information transparency of the supply chain, thereby reducing the credit risk of SMEs financing and the operational risk in SCF. Categorization and analysis of the literature, it provides an important perspective for future research of supply chain finance risk management based on blockchain technology in the era of digital economy.