Intelligent Early Warning Support System of Financial Crisis Based on Recurrent Neural Network

Abstract

Preventing and resolving major financial risks is an important part of the three major battle. Under the new normal economic situation affected by COVID-19, China’s economic environment is complex and changeable, and the problem of financial risks is constantly highlighted. There are many reasons for enterprise bankruptcy □ However, the bankruptcy of domestic and foreign enterprises is closely related to the enterprise financial crisis. A systematic and perfect financial management system can promote the growth of enterprises at the beginning of the establishment of enterprises, and detect and prevent the possible crisis of enterprises. Therefore, it is necessary to establish a financial crisis early warning model in line with the characteristics of enterprises. It is an urgent practical problem to establish a financial crisis early warning system to prevent financial crises and risks, and to create a good institutional environment for safe financial management and sustainable operation of enterprises. For the operators, they can effectively predict the credit risk in advance, strengthen the management, and formulate and implement the credit risk response plan to realize the healthy and stable development of enterprises. The recurrent neural network can better fit and predict the financial risks, and become an effective means of forecasting, evaluation and intelligent early warning.