Finacial Risk Early-warning Model Of CH Co.ltd. Based On Entyopy Theory

In recent years, a large number of physics research is applied to the field of management practices for enterprises optimize management processes, improve management efficiency in the provision of technical means. The term entropy from Greek, meaning the change of expression. Entropy theory is an ideal method for measuring the degree of ordering system, entropy into its present state. That system entropy increase or decrease the entropy change in the reaction system to the ordered or unordered direction conversion trend. Entropy change exist s in every system, and always accompanied by the development of the system. If the enterprise as an integrated system, which in the course of business development, the entropy change all the time, that is, the degree of corporate financial risk all the tim e due to entropy change. This article attempts to entropy theory to the CH company’s financial early warning among its existing deficiencies and compensate for the lack of financial risk early warning methods.Firstly, combing through literature, summed up the financial risk warning scholars research results, and to determine the structure of the arrangement on the basis of the paper, we describe the research focus. Subsequently, theoretical analysis, based on the principle of entropy describes the basic th eory of financial risk warning, the theoretical model and the entropy theory is applied to financial risk early warning feasibility and superiority. Secondly, the company’s financial risk early warning CH organizational structure, the basic system, the exi sting financial early warning methods and existing methods defects. Which leads to the necessity of CH financial early warning model based on entropy theory constructs. Then, the specific constructs CH financial early warning model based on entropy theory: The first step in constructing the index system, the second step to build the initial matrix to be evaluated and data standardization, the third step binding entropy change thought to determine the index entropy, fourth step define the entropy index size, the final step to obtain a comprehensive negative entropy value of each company in CH, CH to judge the size of the company’s financial risk levels, and reasonably predict CH next few years the level of financial risk.Finally, the company uses the entropy theory CH warning model proposed safeguards, including early warning to co-ordinate the transition period, the strengthening of early warning quality of personnel training, improve the financial index system, strengthen the financial system, information technology, timely assessment of correction content.