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A prediction system implemented in a host vehicle to predict a merge cut-in for an autonomous vehicle. The system comprises an input unit for capturing neighboring information of the host vehicle, and a processing unit to receive the captured neighboring information and generate a grid map by determining shape and dimensions of a grid, estimate trajectory of each target vehicle of the one or more target vehicles, based on a driver behavior model of each target vehicle, to determine optimized path of each target vehicle, and generate a global maneuver model by analyzing motion of each neighboring target vehicle, wherein on generation of the global maneuver model a merge cut-in threat for the host vehicle is computed by performing centralized risk management and utilizing the predicted trajectory of the one or more target vehicles.