Application of Internet of Things and Block-chain Technology in Improving Supply Chain Financial Risk Management System

In order to transform the uncontrollable risks of a single enterprise’s credit business into a controllable overall risk, and better alleviate the financing difficulties of small and micro enterprises. This article first studies the concept and function of supply chain finance and the meaning and characteristics of supply chain finance, and then analyzes the operating mechanism of the three financing methods and various risks in the financing process. This article combines the unique operation and business process of the Logistic model of the Internet of Things technology to design a new model to further reduce credit risk and market risk. The empirical analysis results show that: facing the financing problems of small and medium-sized enterprises, the current financing model based on supply chain finance is the most ideal choice. By using blockchain decentralization technology to solve the risks of supply chain financial projects, and using the characteristics of blockchain to improve the efficiency of supply chain financing in clearing and settlement. According to data from the Demica Institute, it is estimated that from 2011 to 2013, the financial supply chain developed by international financial institutions will grow at a rate of more than 30%. It is expected that by 2020, its average annual growth rate will maintain 10%.