Research on Dynamic Hyperparameter Optimization Algorithm for University Financial Risk Early Warning Based on Multi-Objective Bayesian Optimization

Financial sustainability in higher education is increasingly fragile due to policy shifts, rising costs, and funding volatility. Legacy early-warning systems based on static thresholds or rules struggle to adapt to these dynamics and often overlook fairness and interpretability—two essentials in public-sector governance. We propose a university financial risk early-warning framework that couples a causal-attention Transformer with Multi-Objective Bayesian Optimization (MBO). The optimizer searches a constrained Pareto frontier to jointly improve predictive accuracy (AUC↑), fairness (demographic parity gap, DP_Gap↓), and computational efficiency (time↓). A sparse kernel surrogate (SKO) accelerates convergence in high-dimensional tuning; a dual-head output (risk probability and health score) and SHAP-based attribution enhance transparency and regulatory alignment. On multi-year, multi-institution data, the approach surpasses mainstream baselines in AUC, reduces DP_Gap, and yields expert-consistent explanations. Methodologically, the design aligns with LLM-style time-series forecasting by exploiting causal masking and long-range dependencies while providing governance-oriented explainability. The framework delivers earlier, data-driven signals of financial stress, supporting proactive resource allocation, funding restructuring, and long-term planning in higher education finance.

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Publication Details

Journal
Forecasting
Published
2025-10-22
DOI
https://doi.org/10.3390/forecast7040061
Primary Topic
Anomaly Detection Techniques and Applications
Type
article
Field-Weighted Citation Impact
0.00
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article

Research on Dynamic Hyperparameter Optimization Algorithm for University Financial Risk Early Warning Based on Multi-Objective Bayesian Optimization

Nur Fazidah Elias, Ruzzakiah Jenal, Yazrina Yahya, Chao Yu
Forecasting
Anomaly Detection Techniques and Applications
article

Research on Dynamic Hyperparameter Optimization Algorithm for University Financial Risk Early Warning Based on Multi-Objective Bayesian Optimization

Nur Fazidah Elias, Ruzzakiah Jenal, Yazrina Yahya, Chao Yu
article en

Abstract

Financial sustainability in higher education is increasingly fragile due to policy shifts, rising costs, and funding volatility. Legacy early-warning systems based on static thresholds or rules struggle to adapt to these dynamics and often overlook fairness and interpretability—two essentials in public-sector governance. We propose a university financial risk early-warning framework that couples a causal-attention Transformer with Multi-Objective Bayesian Optimization (MBO). The optimizer searches a constrained Pareto frontier to jointly improve predictive accuracy (AUC↑), fairness (demographic parity gap, DP_Gap↓), and computational efficiency (time↓). A sparse kernel surrogate (SKO) accelerates convergence in high-dimensional tuning; a dual-head output (risk probability and health score) and SHAP-based attribution enhance transparency and regulatory alignment. On multi-year, multi-institution data, the approach surpasses mainstream baselines in AUC, reduces DP_Gap, and yields expert-consistent explanations. Methodologically, the design aligns with LLM-style time-series forecasting by exploiting causal masking and long-range dependencies while providing governance-oriented explainability. The framework delivers earlier, data-driven signals of financial stress, supporting proactive resource allocation, funding restructuring, and long-term planning in higher education finance.

ForecastingVol. 7(4)
National University of Malaysia (MY)
Openalex Percentile: Top 84%
Anomaly Detection Techniques and Applications
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