Research On Credit Risk Management Of Supply Chain Finance In Chemical Industry

The Chemical industry is not only our country’s basic industry,but also an important pillar industry.It involves a wide variety of products,a wide range,and a long and complex production process.In this situation,many small and medium-sized enterprises must rely on the radiation of core enterprises to obtain living space.Due to the shortage of funds for small and medium-sized enterprises and the delayed payment of core enterprises,many small and medium-sized enterprises urgently need to finance to maintain their operations.Supply chain finance is a new model for banks to carry out financing for enterprises in the supply chain.Facing the financing needs of small and medium enterprises in Chemical industry,banks and other financial institutions often judge whether to fund based on their credit status.Therefore,effective credit risk management has become the key to the smooth development of supply chain finance by banks and other financial institutions.This paper analyzes the sources of credit risk in the supply chain finance of Chemical industry based on current situation of financing for small and medium-sized enterprises in Chemical industry,supply chain finance business models,and credit risk management.The financial credit risk evaluation index system for the supply chain of Chemical industry is constructed,and the feasibility of the credit risk evaluation index system is tested with the aid of the BP neural network algorithm.This paper also use BP neural network algorithm to test the feasibility of the credit risk evaluation index system.Finally,the credit risk control strategy and the measures to ensure its smooth implementation are proposed,which develop new ideas for solving the financing difficulties of small and medium-sized enterprises.The results of the study are as follows:(1)Credit risk management is very important for banks and other financial institutions to carry out supply chain finance in Chemical industry.The financial credit risks of Chemical industry supply chain mainly come from small and medium enterprises in Chemical industry,core enterprises,3PL enterprises and the supply chain of Chemical industry..(2)Based on the sources of financial credit risks in the supply chain of Chemical industry,a credit risk evaluation index system including indicators of corporate quality,profitability,and development capabilities has been constructed.This system helps banks and other financial institutions to manage the financial credit risk of Chemical industry’s supply chain.(3)BP neural network algorithm has the characteristics of safety and stability.The BP neural network algorithm is used to verify the financial credit risk evaluation index system of Chemical industry’s supply chain,and it is found that the BP neural network algorithm has a strong match with the credit risk evaluation index system and has high application value.(4)Propose financial credit risk control strategies and safeguard measures for the supply chain of Chemical industry.Strictly reviewing the financial statements of small and medium enterprises in Chemical industry and other financing-related application materials,formulating Chemical industry supply chain financial project review meeting process,business descriptions,and inspecting reviewers’ capabilities and other measures are conducive to controlling credit risks.