Research on Risk Early-Warning System of Social Security Fund Investment

The social security fund will meet with many risks just like other investors when it enters the capital market. Because the social security is linked to everyone´s life, it can not endure heavy losses. As a result, it is very necessary to research how to keep those investment risks away. This paper researches how to establish the early warning system of the investment risk of the social security fund, The goal is to avoid the heavy losses of the fund while invested in the capital market. Mean while it analyzes the systematic risk and non-systematic risk that the social security fund may encounter in the investment process, and then finds out where the relevant risks come from: the market environment, the administration structure of investment and the listed company invested. The early warning system is set up on the early warning index system of risks resources, which can be established by combining the Back propagation artificial neural network with multivariable factor analysis method.