Construction of Financial Risk Assessment Model Based on Text Mining and LLM Architecture

Faced with the challenges of accelerating growth in unstructured text data and increasing risk concealment in the financial market, this study constructs a financial risk assessment system that combines text mining with large language models (LLMs). This system forms an end-to-end architecture encompassing data, knowledge, models, services, and governance. The system collects multi source text, constructs a risk knowledge graph, and extracts key events and sentiment signals. These are then integrated into the LLM framework of retrieval augmented generation (RAG) and multi feature fusion to achieve credit risk prediction and default probability estimation. This experiment relies on the FinBen Lending Club dataset (2024) and conducts comparative experiments, ablation studies, error analysis, and stability tests. The model outperforms traditional structured models and plain text models in key evaluation indicators such as F1, MCC, and PR AUC. In scenarios of market environment changes, cross industry migration, and anti-interference, the model’s stability and compliance performance are outstanding. This study designs an intelligent risk identification solution for financial institutions, which makes the identification process explainable, traceable, and auditable. This study has significant theoretical and practical impact on risk governance and decision support for banks, securities, insurance, and regulatory authorities.