Fuzzy Sets in Financial Analysis

Abstract

The complexity and extent of the problems involved in financial decision making have resulted in the development of a large number of different methods of support to the financial decision making process. Since its characteristics include semi-structured and unstructured situations, financial decision making represents an area where decision support systems can be successfully applied, especially knowledge-based decision support systems and intelligent decision support systems. This paper presents a model of support to the financial decision making process based on fuzzy concepts, i.e. a fuzzy expert system that supports the process of financial decision making in a more successful and realistic manner. Since the reality in which financial decisions are made is characterised by the presence of uncertainty and inaccuracy and since, on the other hand, fuzzy concepts represent a tool to successfully model such uncertainties, the introduction of fuzzy expert systems into financial decision making models makes headway in developing a methodology to support the financial decision making process.