With the continuous development of supply chains, managing risk management is expected to become a high ground in the field of financial engineering applications. With the increasing scale and complex structure of the supply chain, how to strengthen the risk management of the supply chain and promote its benign operation is particularly important and necessary. This paper firstly explains the significance of financial engineering and the role of financial engineering in risk management. Then it explains supply chain risk management from two perspectives: supply chain risk mechanism and supply chain risk characteristics. Finally, the measures of integrating financial engineering into risk management are analyzed from the two aspects of the role of financial derivatives and the specific application of financial derivatives. In this paper, the research direction of financial engineering in supply chain risk is prospected from two aspects of application exploration and theoretical research, with a view to help the research development of cross-cutting fields and make new insights for supply chain risk management practice.

Wu Hongxin, Guo Mingming. Application of Financial Engineering in Supply Chain Risk Management. Academic Journal of Business & Management (2024) Vol. 6, Issue 3: 165-169. https://doi.org/10.25236/AJBM.2024.060321.

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