Design of international financial risk estimation model based on improved genetic algorithm

Abstract

The financial industry is developing rapidly, and risk management is an important part of the internal management of financial institutions. In order to accurately estimate international financial risks, improve the risk management performance of financial institutions, and ensure the sustainable development of the international financial market, an international financial risk estimation model based on improved genetic algorithms was designed, the value-at-risk model VAR model was selected to estimate the international financial risk by measuring the degree of economic loss, and the improved genetic algorithm was adopted to the seven parts of immature convergence to quickly obtain the VAR value of international financial risks, including initialize the population, real number coding, determine fitness function, selection operator, crossover operator, mutation operator and predict and process. Results show that the rapid estimation of international financial risks was realized, the designed model can achieve accurate estimation of international financial risks, and the time cost of financial risk estimation under different sample sizes is less than 500 ms.