New risk measurement model helps banks make smarter financing decisions.
The article explores a new way to measure financial risks in supply chains by using the VaR model. By analyzing financial data like profit rate and return on assets, banks can assess the business status of enterprises. Introducing the β value helps banks screen financing objects based on risk preference. If an enterprise's β value exceeds a set value, the bank will not lend, helping to allocate financing quotas and control risks effectively.