Study On Early-warning And Precaution Of Financial Crisis In Enterprises

Any enterprise is liable to encounter financial crisis in a competitive world. The enterprise would fall into difficult position if the crisis cannot be detected punctually and released effectively. The financial problem in a business would often cause great loss to the relative enterprises, even the same counsequence to the other business; meanwhile, tromendous demages would be brought about to other creditors and banks; furtuer more, chain reaction and vicious circle would be caused, the whole macroeconomy would be badly affeced. Worsely, the defertoriation of macroeconomy in return would intensify the financial problem.Therefore, the ability to resist risks would be greatly improved if the omen would be early discovered and some anti-measures would be taken. In a word, the study of early-warning to the economic problem is of significance to whether the development and survival of an enterprise or the improvement of the whole economic environment.First, the feature, the causes and early omens of financial crisis are depicted, and these causes to the financial crisis are shown by fish-bone chart clearly.Secondly, the early-warning pattern to financial crisis was set up in this parts.by four aspects and thirteen indexes. Four sides include stable ability, operational ability, profitability and developmental ability.Thirdiy, the institutional measures and technical measures which aimed at causes to financial crisis were proposed in this part.Finally, a virtual case was employed to test and verify the evaluation pattern, and a satisfying result was achieved. Meanwhile, some precaution measures were provided to those problems involved in enterprise finance.