Modern Enterprise Financial Crisis Early Warning System

With the intensifying of international competition and the changing of market environment, the enterprise will inevitable face with various financial crisis. The establishment of financial early warning system will be helpful to guard against and overcome the financial crisis. The financial early warning system is the system that monitor the potential crisis in the business and management process basing on the company's information. The establishment of financial early warning system can guard against and overcome the crisis, avoid loss, protect the general investors' benefit.In the modern society with the competition daily superheating, the enterprise faces fast changing environment which will cause more and more survival risk and financial risk. The enterprise has strong desire for the relatively accurate risk early warning system. But the existing financial early warning system mostly imitates the foreign financial early warning system and do not consider the market economy environment as well as enterprise's characteristic of our country, which will weaken the accuracy and scientific nature of the financial early warning system.This article begins with the financial crisis and the early warning outline, separately commentate and compare the qualitative analytic method and the quota analytic method, the single variable model and the multivariable model, and form the general opinion on the establishment of financial early warning system in modern enterprise. Firstly, I proposes suggested changes to the existing financial early warning model, and formulates that we should update the traditional financial crisis early warning system in order to adapt to the fast changing circumstances. This article puts forward the renewal from four aspects which include the renewals of financial early warning model, financial early warning target, marginal value and weight of index. Then, it summarizes the work that the modern enterprise need to do...