Enterprise financial risk prediction and intelligent early warning model based on deep learning

Enterprise financial risk prediction is a critical component in ensuring economic stability and business sustainability. The intelligent early warning model enhances decision-making by detecting potential risks before they escalate into significant financial losses. However, traditional models often rely on static indicators and linear assumptions, lacking the capacity to capture complex, temporal patterns in enterprise financial data. This limitation reduces their effectiveness in dynamic business environments. To address these challenges, this paper proposes a Bidirectional Long Short-Term Memory-Based Financial Risk Prediction (BiLSTM-FRP) model with an Attention Mechanism. The model leverages bidirectional long short-term memory networks to understand both forward and backward financial trends, while the attention layer prioritizes the most influential features that affect enterprise risk. This hybrid deep learning approach enables the system to generate real-time risk scores and trigger early warnings, allowing stakeholders to implement proactive strategies. Experimental results demonstrate that the proposed method significantly outperforms existing baseline models in accuracy, recall, and early detection performance. This confirms its potential as a reliable tool for financial institutions and enterprises in mitigating risk and enhancing financial resilience. The BiLSTM-FRP model outperformed four financial risk prediction variables, achieving high accuracy (0.93), strong recall (0.91), and effective early detection (0.90). Its financial resilience score (0.88) indicates robustness in volatile markets, highlighting its reliability and potential as a real-time financial risk management and prediction tool.

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Publication Details

Journal
Discover Artificial Intelligence
Published
2025-08-29
DOI
https://doi.org/10.1007/s44163-025-00497-1
Citations
4
Primary Topic
Financial Distress and Bankruptcy Prediction
Type
article
Field-Weighted Citation Impact
15.64
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article

Enterprise financial risk prediction and intelligent early warning model based on deep learning

Wen Chen
4 citations
Discover Artificial Intelligence
Financial Distress and Bankruptcy Prediction
15.64
article

Enterprise financial risk prediction and intelligent early warning model based on deep learning

Wen Chen
article en
4 citations

Abstract

Enterprise financial risk prediction is a critical component in ensuring economic stability and business sustainability. The intelligent early warning model enhances decision-making by detecting potential risks before they escalate into significant financial losses. However, traditional models often rely on static indicators and linear assumptions, lacking the capacity to capture complex, temporal patterns in enterprise financial data. This limitation reduces their effectiveness in dynamic business environments. To address these challenges, this paper proposes a Bidirectional Long Short-Term Memory-Based Financial Risk Prediction (BiLSTM-FRP) model with an Attention Mechanism. The model leverages bidirectional long short-term memory networks to understand both forward and backward financial trends, while the attention layer prioritizes the most influential features that affect enterprise risk. This hybrid deep learning approach enables the system to generate real-time risk scores and trigger early warnings, allowing stakeholders to implement proactive strategies. Experimental results demonstrate that the proposed method significantly outperforms existing baseline models in accuracy, recall, and early detection performance. This confirms its potential as a reliable tool for financial institutions and enterprises in mitigating risk and enhancing financial resilience. The BiLSTM-FRP model outperformed four financial risk prediction variables, achieving high accuracy (0.93), strong recall (0.91), and effective early detection (0.90). Its financial resilience score (0.88) indicates robustness in volatile markets, highlighting its reliability and potential as a real-time financial risk management and prediction tool.

Discover Artificial IntelligenceVol. 5(1)
Shaanxi Polytechnic University (CN)
Climate action
Openalex Percentile: Top 1%
Financial Distress and Bankruptcy Prediction
15.64
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Enterprise financial risk prediction and intelligent early warning model based on deep learning — Wen Chen · Discover Artificial Intelligence (2025) | TGRS Research Map | TGRS