Analysis on Risk Management In Supply Chain Based on the CDS Model

It is well known that stable risk in supply chain is absolutely necessary for enterprises, so how to maintain stable risk in supply system becomes an important content in SCM. Because supply chain system itself is a very complex system, the interacting relationship among key factors in this system must be studied in order to grasp accurately and forecast its running rules. In this paper, a model based on CDS theory is provided for supply chain risk management. The model focuses on describing the change of risk in supply chain, discussing a simple pricing model of standard credit default swap and long-term credit default swap. At the same time, some academic conclusions are drawn to improve supply chain risk management.