Analysis of the Impact of Non-Financial Elements on Financial Risks in Organizations from the Perspective of Various Enterprise Types
DOI:
https://doi.org/10.54097/y4xmvd72Keywords:
Financial risk, non-financial factors, machine learning, comprehensive evaluation.Abstract
This research delves into the impact of non-financial factors on financial risk, assisting enterprises in constructing a robust risk management system to promote sustainable development. It begins by constructing an evaluation index system for corporate financial risk using the entropy-weighted TOPSIS method, which minimizes subjectivity and ensures objective weighting. The study then analyzes the influence of non-financial factors on financial risk using the feature importance output of the XGBoost algorithm. The findings demonstrate that different firm types have distinct effects of non-financial factors on financial risk.Some non-financial indicators such as green invention patent applications, internal control scores, social responsibility and trust index are important across all enterprise types. However, the findings highlight that the impact of non-financial factors on financial risk varies by enterprise type. Based on these conclusions, the paper provides recommendations for corporate risk management to enhance financial health and mitigate potential risks.
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