Research On Enterprise Financial Early-warning System

There are some businesses which do not performance successfully because of fault inthe world economic and some even fall into the crisis. But any crisis has a course ofappearing progressively and worsening instantly, and the crisis will be reflected by thefinancial indexes and data finally. Business financial early warning, giving financial earlywarning from the angle of the finance, by analysing the business financial statement andthe relative operating materials and utilizing timely financial data and relative datemanagement, forsees the risks situation that business will face up and analyzing thereasons of financial crisis and discover unapparent problems in the financial operatingsystem in order to take preventive measures and put forward the related financial analyzingsystem of eliminating warning .Based on the present theoretical and practical study on financial early warning and byanalyzing the financial early warning of our country and observing the applied state, thispaper poses the conception of business financial early warning system: firstly, to makesystemic design on the early warning mechanism to achieve its functions ofmonitoring ,examination and treatment, and to realize its desired role and form a sounddynamic circle; secondly, set up monitoring index system tallies with the business actualsituation which can be divided into general index system monitoring routine business andcritical index system monitoring financial crisis; thirdly, statistics index method, linearmodel precaution method and efficacy coefficient method are ilustrated in the financialearly warning method system furthermore, this paper also proposals how to prevent andeliminate warning.After putting forward the conception of business financial early warning system, theauthor designs proper financial early warning system for ZhongGang Group aiming at itsactual situation.