Corporate Financial Crisis Management System Is Discussed

Financial crisis indicates that the financial activity of the enterprise is out of control or has been frustrated. It is the external reflection of decreasing profitability and solvency showing that the financial condition is not balanced or is deteriorating. This financial crisis may also lead to bankruptcy without proper management. However, we have to note, financial crisis itself does not explode whenever it occurs. It is coming into being step by step, from start to deterioration and final explosion.When facing fierce competition with the principle: Only the superior survive, our domestic listed companies got serious financial hurt in the recent few years. In this critical situation, it is essential of us to establish a financial crisis management system to help the enterprise to prevent the potential financial crisis, identify the crisis in existence, predict he financial crisis in advance and effectively deal with it whenever it happens.Our financial management system includes how to prevent the financial crisis, how to identify the financial crisis, how to predict the financial crisis and how to deal with the financial crisis. The purpose to establish this system is to prevent financial crisis from happening and minimize its negative impact to protect the enterprise and maintain healthy financial operation. In our analysis, we have taken the characteristic of financial crisis into consideration and furthered out analysis in financial crisis prevention, financial crisis identification, financial crisis prediction and financial crisis solution. Apparently, our analysis not only focuses on how to survive the crisis when it happens or only focus on how to predicate the crisis by different kinds of financial models. We have integrated how to prevent the crisis, how to identify & predict the crisis and how to survive the crisis into one system. This system is also an on going process coincides with the characteristics of financial crisis.From the scope of this financial crisis management system, we can see this financial management system can change the mindset of present...