On the Application of Financial Engineering in Supply Chain Risk Management

Abstract

Supply chain risk management is one of the important challenges faced by enterprises in the globalised and complex market en_x005fvironment. With the rapid development of financial engineering, its application in supply chain risk management is getting more and more
attention. The purpose of this paper is to explore the application of financial engineering in supply chain risk management and to analyse its
advantages and challenges. It is found that financial engineering can provide a variety of tools and methods to manage supply chain risks and
can help companies reduce risks and improve efficiency. However, financial engineering faces some challenges in its practical application,
such as incomplete and inaccurate data and model complexity. Therefore, enterprises need to carefully consider these challenges when applying financial engineering for supply chain risk management and make reasonable choices and decisions based on the actual situation.