Exploration on Risk Assessment and Prediction of Digital Economy under Machine Learning Algorithms

The digital economy is becoming the main force driving the development of the world economy, and its sustainable development cannot be achieved without sound digital governance. Establishing an objective and scientific evaluation index system is of great significance for accurately understanding the development level of the digital economy and promoting global digital governance. On the basis of analyzing the connotation of the digital economy, it was summarized as four major characteristics: "economies of scale", "technology driven", "ecological development", and "dynamic management". Guided by the characteristics of the digital economy and theories such as innovation systems, ecosystems, and new institutional economics, a systematic framework for risk assessment of the digital economy was established based on systematic principles. Starting from the phenomenon, causes, and era value of digital economy risks, this article analyzed the necessity and governance starting point of digital economy risk prevention and digital governance in China, and provided countermeasures for legal governance of digital economy risk prevention. It also explored the construction of a digital economy risk warning system combining BPNN (Back propagation neural network) and GA (Genetic Algorithm) algorithm. Finally, the experiment proved that the accuracy of predicting "good economy" and "severe economic risk warning" was over 94%.