Financial Credit Risk Evaluation Based on Core Enterprise Supply Chains

WeiMing Mou, Wing-Keung Wong and Michael McAleer
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WeiMing Mou: College of Economics and Management, Changzhou Institute of Technology, Changzhou 213022, China

Sustainability, 2018, vol. 10, issue 10, 1-17

Abstract: Supply chain finance has broken through traditional credit modes and advanced rapidly as a creative financial business discipline. Core enterprises have played a critical role in the credit enhancement of supply chain finance. Through the analysis of core enterprise credit risks in supply chain finance, by means of a ‘fuzzy analytical hierarchy process’ (FAHP), the paper constructs a supply chain financial credit risk evaluation system, making quantitative measurements and evaluation of core enterprise credit risk. This enables enterprises to take measures to control credit risk, thereby promoting the healthy development of supply chain finance. The examination of core enterprise supply chains suggests that a unified information file should be collected based on the core enterprise, including the operating conditions, asset status, industry status, credit record, effective information to the database, collecting related data upstream and downstream of the archives around the core enterprise, developing a data information system, electronic data information, and updating the database accurately using the latest information that might be available. Moreover, supply chain finance and modern information technology should be integrated to establish the sharing of information resources and realize the exchange of information flows, capital flows, and logistics between banks. This should reduce a variety of risks and improve the efficiency and effectiveness of supply chain finance.

Keywords: supply chain finance; core enterprises; financial credit risk evaluation; fuzzy analytical hierarchy process (FAHP) (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Related works:
Working Paper: Financial credit risk evaluation based on core enterprise supply chains (2019)
Working Paper: Financial Credit Risk Evaluation Based on Core Enterprise Supply Chains (2018)
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