Corporate Financial Early Warning System

On one hand the market economy with keen competition has offered the wide management stage for enterprise, on the other hand it has hidden countless rapids and dangerous shoal again. They may be involved in the swirl failing because of careless slightly. Enterprises get into a difficult position because of the financial crisis, even the example of declaring bankruptcy has been the common occurrence. But crisis of any enterprise are the gradual worse course. Find the question existing in the operation activity of enterprise in time, perceive the signal of the financial crisis early, predict financial affairs of enterprise fail, enterprise operator can take the valid measure at the bud phase that financial crisis appear. It is not only merely has value in theory, but also has a guidance function to the financial management practice of enterprises.The text is on the basis of drawing lessons from the research results of this field, and has described the definition, function, request and important meaning of the financial early-warning system of enterprise's affairs. It introduces the theories and analysis methods of financial early-warning in detail and according to them, the enterprises design and set up the financial early-warning system. Moreover, the article tells readers how to set up the operation structure and work mode to apply the financial early-warning system in enterprises successfully. The key content of the article is the study of the financial early-warning method and of how to set up the financial early-warning system. It attempts to make some progress in this field.