Application of GRA-RF Combination Algorithm in Early Warning Mechanism of Financial Business Cycle

With the development of the times, financial crises have gradually increased. The impact of financial crises on the manufacturing industry is enormous, which can cause goods to be unsold and lose competitiveness in terms of price. Therefore, how to improve the financial business cycle early warning mechanism is of great significance. A good early warning mechanism can predict risks in advance and take corresponding countermeasures in advance. This paper studied the application of GRA-RF combination algorithm in the early warning mechanism of financial business cycle, which was to improve the early warning ability through GRA-RF algorithm. Through experiments, this paper tested the financial risk reduction of financial business cycle early warning mechanism after using the GRA-RF combination algorithm. The results showed that the financial and economic warning mechanism using the GRA-RF combination algorithm had a maximum reduction of 19% in financial risk and a minimum reduction of 10%. From this result, it can be seen that the GRA-RF algorithm can achieve good results when used in financial and economic warning mechanisms.