A Financial Risk Management And Consultancy Solution Via Data Mining
The awareness of factors that contribute to making a business successful is important; it is also applicable for all the related parties to have an understanding of financial performance and bankruptcy. It is also important for a financial manager of successful firms to know their firmís possible actions that should be taken when their customers, or suppliers, go into bankruptcy. Similarly, firms should be aware of their own status, of when and where they should take necessary actions in response to their financial problems, as soon as possible rather than when the problems are beyond their control and reach a crisis. Therefore, to bring out the financial distress risk factors into open as early warning signals and manage risk have a vital importance for SMEs as all enterprises. There is no specific method for total prevention for a financial crisis of enterprises. The important point is to set the factors that cause the condition with calmness, to take corrective precautions for a long term, to make a flexible emergency plan towards the potential future crisis. This study was designed as a project to bring out the financial risk factors as early warning signals and develop road maps to manage risk and financial position for SMEs in Turkey. Our project is the biggest study as covered amount and also first study that designed an intelligent data mining model with R integration for SMEs in Turkey. The project has funded by The Small and Medium Enterprises Development Organization.
Keywords- Data Mining, Intelligent Systems, Financial Risk, Early Warning.