A hybrid soft computing approach to analyze and forecast financial risks
摘要
Soft computing techniques in fuzzy database mining have paved a way for solving complex data analysis problems related to financial risk forecasting. In this paper, an ensemble approach for financial risk forecasting is proposed for financial risk forecasting. The proposed approach utilizes collection of soft computing techniques such as fuzzy logic (FL) to handle uncertain financial data, convolutional neural network (CNN) to tune the obtained fuzzy parameters followed by optimization of neural network model using genetic algorithm (GA). The proposed approach can model intricate financial scenarios where classical statistical approaches face difficulties. GA optimizes Fuzzy Rules and Membership functions while CNN help make predictions more accurate. The results reveal that the forecasting accuracy evidently improves as compared to those using traditional methods, illustrating promising applications of integrating soft computing within financial risk management.