Establishment Of The Financial Forewarning System For Enterprises

On one hand, the dog-eat-dog market economy provides a wide stage for enterprises, but on the other hand, there are countless race and dangerous shoal hided in it. If the operator was a little indiscreet, his business in charge might be in a failure. So many bankruptcy examples came forth because of financial crises. However, any crisis in business is a gradual process of deterioration. It is important for the operators to find problems existing in financial management, detect signals of financial crises in time, which can help the operators take effective measures to improve management and prevent failure when the financial crises just appear. Therefore, establishment of the financial forewarning system for enterprises has not only theoretic study value, but also has reality significance to the financial management practices.This paper is a subsequent study of Enterprises Crises Forewarning Theory and Methods Researches supported by National Science Funds. Based on enterprise crises forewarning theory, the study aims to forewarn and take precautions against financial management mistakes and crises so as to prevent and rectify them. In accordance with the features of financial management, theory analysis and positive analyses are to be applied to research.This paper discusses the establishment principle and aim of the forewarning system of financial management and analyzes the movement laws and cause of financial risks and crises. On these bases, the organization preparation and working program of the whole financial forewarning management system are to be discussed; and what's more, the forewarning index system are established combined with the existing financial indexes, which can monitor and distinguish the financial management risks. This index system fills in the gaps of the field. Finally, for the need of practice, a demonstration study was made in a company named Jiangxi Changyun Ltd. based on the study achievement.