A New Financial Risk Management Model

To the problem of the financial risk management, the paper brings forward a new model based on main component analysis method and multi-classes support vector machines. In one hand, the main component analysis method was used to reduce the number of indexes and to improve the efficiency. In the other hand, the multi-classes support vector machines was used to classify the warning accurately. Because the new model can not only improve the efficiency but also improve the precision, it is proved that the new model is a more feasible method than any other methods before.