Risk assessment of cross-border supply chain finance

Abstract

This dissertation aims to develop a risk assessment framework for cross-border supply chain finance (SCF) to assist businesses in identifying and mitigating associated risks. With the advancement of the internet, the rapid growth of the cross-border e-commerce sector has driven an increasing demand for cross-border SCF. However, this field faces numerous risks, including credit, market, operational, and legal risks. Through a comprehensive literature review, this paper analyzes the evolution of SCF, its operational models, digital transformation, and sustainability, focusing on identifying and assessing risks in cross-border SCF. The study employs the Fuzzy Analytic Hierarchy Process (FAHP) to construct a risk assessment system, incorporating four primary risk indicators—credit risk, market risk, operational risk, legal risk, and 17 secondary indicators. By conducting a hierarchical analysis of risk factors and a fuzzy comprehensive evaluation, the paper quantifies the weight of each risk factor and proposes targeted risk prevention measures. The findings indicate that credit risk holds the highest weight in cross-border SCF, followed by legal, market, and operational risks. This study offers both theoretical foundations and practical insights for risk management in cross-border supply chain finance, thereby supporting the sustainable advancement of the field.