Research on the identification and prevention of supply chain finance risks based on ISM-MICMAC model

Abstract

Supply chain finance is an important means to address the shortage of funds for small and medium-sized enterprises (SMEs). In recent years, the global outbreak of the Covid-19 epidemic has exacerbated the financing challenges of SMEs, and the importance of supply chain finance to the real economy has become increasingly evident, but at the same time, supply chain finance has also exposed many risks. This paper identifies 21 risk factors in supply chain finance, determines the hierarchical relationship of the risk factors by constructing an explanatory structural model (ISM), and then applies the cross-influence matrix multiplication method (MICMAC) to calculate the dependency and driving force magnitude of the 21 risk factors. The conclusions are as follows: natural environmental risks ( ), the hidden risk of core enterprise management ( ) are deep-rooted supply chain finance risks and have strong driving forces. Inadequate corporate solvency ( ), inadequate corporate profitability ( Inadequate corporate operating capacity ( Inadequate growth capability of enterprises ( ), inadequate credit guarantee capacity of core enterprises ( ), low level of creditworthiness of SMEs ( ) is a direct influence on the risk of supply chain finance, which is more influenced by intermediate factors and has a strong dependency. This result will provide scientific decision-making basis for supply chain financial risk management, saving more time and cost.