Title: Research on the early warning system of regional financial risk

Authors: Xiaowei Lin; Yaqin Peng

Addresses: Fuzhou University of International Studies and Trade, Fuzhou, 350202, China ' Fuzhou University of International Studies and Trade, Fuzhou, 350202, China

Abstract: It is a systematic research work to design the early warning system of regional financial risk. This paper selects a total of 17 regional financial risk early warning indicators from the aspects of external macro-impact, regional macro-economic and regional micro-finance. The paper then uses the mapping method, GRITIC method and comprehensive scoring method to deal with the index standardisation, index weight and comprehensive risk measurement respectively, and construct the regional financial risk early warning system. Based on the empirical research of Fujian Province's actual data, the results show that there are implied fluctuations in the overall stability of regional finance in Fujian Province from 2013 to 2017, but some important early warning indicators still have different levels of risk. Finally, according to the early warning results of Fujian Province, the targeted financial risk prevention measures are put forward.

Keywords: regional financial risk; early warning system; mapping treatment; GRITIC method.

DOI: 10.1504/IJISE.2022.124063

International Journal of Industrial and Systems Engineering, 2022 Vol.41 No.3, pp.404 - 415

Received: 03 Jul 2020
Accepted: 05 Sep 2020
Published online: 12 Jul 2022 *

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