Study on Enterprise Financial Risk Prevention and Early Warning System Based on Blockchain Technology

• Published in: Mobile information systems 2022, Vol.2022, p.1-12
• Main Author: Xie, Wangsong
• Format: Article
• Language: English
• Subjects: Archives & records; Banks; Blockchain; Collateral; Commercial banks; Cooperation; Credit risk; Cryptography; Default; Early warning systems; Emergency communications systems; Evolution; Financial institutions; Financial management; Financial services; Financing; Logistics; Risk management; Small & medium sized enterprises-SME; Small business; Supply chains; Value chain
• ISSN: 1574-017X; 1875-905X
• DOI: 10.1155/2022/4435296

To address the challenges of financing SMEs, breaking the limitations of traditional financing models, a blockchain-based financial risk prevention and early warning system for businesses has been proposed and an in-depth study of the system has been undertaken. As a scientific and technological means to strengthen the disclosure and sharing of information such as credit records and risk early warning, The key to getting financial institutions to lend to SMEs is to avoid financial credit risk in the value chain. Considering SMEs located in supply chains as an object of study, using the logical relationships between block chains and financial credit risk management chains, three principles of supply chain management are proposed by analyzing the logical relationships between supply chains and financial credit control chains. Chain using blockchain technology, namely: the principle of recognizing the trust of major enterprises, the principle of sharing information about the financing process and the principle of general cooperation for successful financing. Based on this principle, an evolutionary game model is used to analyze the evolutionary path of endorsement fiduciary relationships between major enterprises and SMEs, the influencers of evolutionary equilibrium, the evolutionary path of cooperation between commercial banks and SMEs in financing, the evolutionary path under the control of third-party institutions, and influencers. The research shows that the financing activities of commercial banks and small and medium-sized enterprises are based on the trust endorsement of core enterprises in the supply chain, and the intervention of third-party regulators will help to promote the consistent cooperation and information sharing of all participants in the supply chain, so as to promote the smooth completion of supply chain financing.