Analysis of the Key Elements Contribute to the Financial Forecasting Models--Analysis of the Financial Control and the Bayesian Model in Systemic Risk Evaluation

Abstract

Due to various factors, the performance of the financial market is always hard to predict. However, modelling, a technique based on mathematical theory and data science technology, has been an effective approach to forecast potential risks. In this article, the purpose of the research is to analyze how the Bayesian Model plays its unique role in forecasting the effect of systematic risk globally, and which is still also in use in most of financial forecasting. The essay doesnt involve solid equations and numerical relationships among different factors, but it does broadly offer the resolutions for the risks. The risk could be a detrimental factor that leads to a complete financial failure or even a crisis that influences normal peoples felicity. In this work, several ways to anticipate and decipher the risk are presented, all of which can reduce the risk effectively.