Enterprise Financial Early Warning Essay

As a barometer of economic operation and an indicator of the business condition of enterprises, financial early warning research not only has high academic value, but also has great application value. The following is a sample of my essay on enterprise financial early warning paper for you, welcome to read and refer to!

Enterprise Financial Early Warning Essay 1

Enterprise Financial Early Warning Analysis

Abstract: Financial risk is an important hidden danger that affects the competitiveness and viability of enterprises, with the expansion of today's enterprise scale, the scope of financial management of the enterprise is also getting bigger and bigger, and the increase in the amount of information on the enterprise's assets, production and currency has also made the enterprise's financial management is facing a greater challenge, and in modern enterprise Under the requirements of modern enterprise management system, the financial management of enterprises is gradually from a single accounting audit to participate in the direction of corporate decision-making, which also makes the importance of preventing financial risks greatly increased. Combined with its own work experience, analyzes the specific content of the enterprise financial early warning, problems and early warning mechanism of the construction, I hope to be able to help business managers.

Keywords: financial early warning; components; problems; construction measures

Financial risk, refers to the enterprise due to the irrational organizational structure, improper financing measures that make the enterprise's expected return decline, or even the loss of the ability to repay the risk, is an important issue facing the survival and development of enterprises. Financial early warning, it is the enterprise to prevent financial risk and take to improve the system, strengthen management and a series of measures. At present, many enterprises have recognized the importance of financial early warning, to take certain early warning measures, but due to the limitations of many business managers of their own professional and cognitive, resulting in the financial early warning mechanism of the enterprise there are certain defects, can not be perfect protection of the safe operation of the enterprise, in view of these phenomena, the managers should be systematically aware of the financial early warning mechanism of the composition and the construction of the way in order to really do to avoid harm.

1 enterprise financial early warning mechanism content

1.1 comprehensive financial risk analysis mechanism

enterprises in the establishment of financial risk prevention mechanism, first of all, should set up an independent enterprise financial risk analysis department, will analyze the financial risk of the enterprise as the department's main task of the personnel, the financial risk analysis department can also be by the enterprise audit department, the financial department and planning department **** with the responsibility of the department, the financial risk analysis department can also be by the enterprise audit department, the financial department and the planning department, the financial risk analysis department can also be by the enterprise audit department, the financial department and the planning department. Planning department **** with the same commitment. The main body of the financial early warning department is the early warning analysts. In addition, enterprises in the establishment of financial early warning and analysis mechanism, but also to strengthen their organizational management, so that the various business sectors can be clearly organized, the task of a clear division of their respective duties, so that the various sectors of the enterprise can adapt to the production and operation of the enterprise, so that the early warning department's work on the track of continuity, normalization.

1.2 Rapid information transfer mechanism

The analytical object of the enterprise financial early warning department is the production and business data of the enterprise departments, therefore, only timely production, business, operation of the enterprise departments of the information quickly conveyed to the enterprise financial early warning department in order to carry out its work, therefore, the enterprise in the formation of the enterprise financial early warning department at the same time, but also pay attention to Coordination of the various business sectors of the contact, to ensure that all sectors of the enterprise and the early warning department of the information channel between the smooth, so that the financial early warning department can grasp the operation of the enterprise in a timely manner, to create a good basis for risk analysis.

1.3 Strict financial risk evaluation and responsibility mechanism

The financial risk warning department, to grasp the enterprise data on the basis of rapid search for the enterprise financial risk, and to determine the size of each risk, the impact on the enterprise can be caused by the effective avoidance of financial risk, when it is difficult to avoid the risk, to ? When it is difficult to avoid risks, it is necessary to choose the lesser of two evils. , will minimize corporate losses, and quickly feedback to the decision-making level, ready for remediation afterwards. In the analysis of financial risk at the same time, but also on the risk of tracking, will be responsible for the implementation of the individual, the establishment of a strict reward and punishment mechanism, according to the size of the loss of the enterprise caused by the risk of the department or individual to carry out the appropriate penalties, to increase the responsibility of the person's vigilance, to avoid repeating the same mistake, to ensure the healthy operation of the enterprise.

2 current enterprises in the financial early warning problems

2.1 business leaders do not know enough

A large part of China's business leaders only pay attention to the generation and sales of the enterprise, the enterprise financial management does not have a full understanding of the enterprise's attention to the enterprise is concentrated in the creation of enterprise wealth, the cognition of the increase in business interests is also limited to improve production and expand business The financial management of the increase in business interests of the huge role of the enterprise, making the enterprise financial risk frequently, the enterprise financial risk is only after the occurrence of remedies, has never formed a systematic risk warning mechanism, making the enterprise repetitive occurrence of the same financial risk, resulting in unnecessary losses.

2.2 Early warning mechanism is not perfect

Most of China's small and medium-sized enterprises have not established a sound business organization, the lack of scientific guidance for enterprise management, low level of operation, the scale of the enterprise does not match the way the enterprise management. The perfect enterprise financial early warning mechanism including before, during, when the three parts, and in the actual management, many enterprises only pay attention to the collection of information beforehand and during the analysis, ignoring the feedback after the fact makes the enterprise financial early warning system link missing, can not play a practical role. There are also some enterprises that through the financial risk is safe, no risk of generating mechanisms for in-depth summarization and research, timely lessons learned and lessons learned, ignoring the financial early warning system of the later stages of management, so that the same financial crisis occurred again when the enterprise can not make a timely response, so that the enterprise suffered unnecessary losses.

2.3 Unscientific financial management

First of all, in the formulation of financial indicators, many companies do not have a good grasp of corporate assets, profitability, capital structure and cash flow, in the formulation of financial indicators not based on the actual situation of the development of the enterprise in the planning, resulting in the enterprise financial early warning measures also deviate from the actual operation of the enterprise's needs, can not play a role in a timely manner. There is also a serious phenomenon of distortion of corporate accounting information, a lot of corporate statements have been artificially modified, too much false information, so that the enterprise financial early warning measures are not built on the correct data, the enforceability is greatly reduced.

3 sound enterprise financial early warning mechanism method

3.1 Improve the ideological understanding

First of all, business leaders should correct the attitude towards financial early warning, financial early warning as a risk avoidance, improve the interests of the enterprise's important work, the organization of business management personnel *** with the development of the enterprise financial risk early warning department, the selection of financial early warning staff, and to improve the level of leadership. , strengthen enterprise management, so that the enterprise financial early warning department can get the effective cooperation of other departments, get sufficient information security, system security and talent security. Secondly, to strengthen the ideological education of the department staff, so that they realize that they have a huge role in the enterprise, rather than ? idle position? , and strive to improve their analytical efficiency and forecasting level.

3.2 Strengthen financial management

Enterprises in the development of financial management objectives, to link their own reality, rather than copying the provisions of the relevant standards, managers should first understand the production of various sectors of the enterprise and the business situation, clear cost consumption in all aspects of the enterprise, the estimation of corporate profits, and to strengthen the management of the enterprise's finances, based on the establishment of a sound financial early warning mechanism, so that the financial early warning mechanism with the enterprise's financial management, and to improve the financial management of the enterprise's financial management. mechanism, so that the financial early warning mechanism and the actual operation of the enterprise is consistent with the real service for the enterprise to avoid financial risks. Secondly, to strengthen the audit supervision of the accounting department, to severely eliminate the artificial modification of the financial information of the enterprise, to ensure the authenticity of the financial information of the enterprise, so that the formulation of financial early warning measures can be established on the basis of real financial data.

3.3 Sound Early Warning Mechanism

First of all, the enterprise should be clear about its own operation process, link and scale, to establish a reasonable means of enterprise management, on the basis of which the establishment of enterprise financial early warning mechanism. The complete enterprise financial early warning mechanism, including the collection of enterprise data, analysis and processing and feedback of the three phases, the financial early warning department in the collection of business data, information, first of all, to check its authenticity, to ensure that the data meets the actual situation of the enterprise, and then analyze the enterprise on this basis in the operation and management, business sales, tax payments, etc. There may be a risk, and the development of a reasonable avoidance measures to prevent the enterprise risk, or at a small cost. enterprise risk, or to avoid large enterprise risk at a small cost, so that the loss of the enterprise to minimize. Finally, the source of enterprise risk, caused by the loss of assessment and feedback, should be responsible for the departments and individuals to carry out reasonable punishment, prompted to raise their vigilance, so that the decision-making level of the enterprise to develop a reasonable system, measures to ensure that the enterprise will not repeat the mistakes, to ensure that the development of the enterprise is carried out smoothly.

4 Summary

The scientific financial early warning mechanism is a necessary means for enterprises to avoid financial risks and ensure the healthy development of enterprises, as well as an important guarantee for the sustainable development of the socialist national economy. Enterprise managers only fully recognize the importance of the establishment of financial early warning mechanism, improve the level of enterprise management, improve the management quality and management level of enterprise managers, in order to make the enterprise to avoid harm, more healthy development, and promote the social attention to the continuous improvement of the market economic system and the progress of the national economy.

References

[1] Zhang Yuqin. The important role of financial early warning in the financial risk management of listed companies in China[J]. Research on Finance and Accounting, 2008,(12).

[2]Zhang Hongri. Research on Early Warning of Financial Risk of Listed Companies in China's Small and Medium-sized Enterprises Sector--A Comparative Analysis Based on Two Multivariate Models[J]. Economist, 2009,(6).

[3]Wu Shu-chang, Jiang Xiaoning. Accumulation, Diffusion and Control of Financial Risks under Aggressive Financial Policies--Taking? *ST Huayuan? as an example[J]. Finance and Accounting, 2009,(10).

[4]Wang Lin, Zhou Xin. An empirical study on the early warning model of financial crisis of listed companies in China[J]. Journal of Chongqing Institute of Science and Technology (Social Science Edition), 2008, (6).

[5]Qian Aimin, Zhang Shujun, Cheng Xing. Construction and Test of Financial Early Warning Indicator System Based on Free Cash Flow--Empirical Data from A-share Listed Companies in China's Machinery Manufacturing Industry[J]. China Soft Science, 2008,(9).

Enterprise Financial Early Warning Thesis 2

Talk about enterprise financial early warning system

[Abstract] In recent years, China's rapid economic development of enterprises, but also brings many disturbing factors, so whether from a macro or micro point of view should be prevented from the risk of setting up a financial early warning system. Financial early warning research in China is a newly developed research topics, has a high research value. In this paper, the authors in the spirit of loyalty to the basis of theoretical research, respectively, through the concept of financial early warning, financial early warning system of the basic principles of financial early warning system, financial early warning system of the extension and expansion of the discussion, so that we have a preliminary understanding of the financial early warning system of this emerging concept, for enterprises to establish a successful risk prevention and early warning system services.

[Keywords] financial early warning enterprise financial early warning system

Financial early warning research as the barometer of economic operation and the indicator of the business situation, not only has a high academic value, but also has a huge application value. Financial early warning is composed of two words: financial crisis and early warning. Financial crisis early warning is based on financial accounting information, by setting and observing the changes of some sensitive early warning indicators, the enterprise may be or will be faced with financial crisis and the implementation of real-time monitoring and prediction alarm. Financial crisis refers to the loss of the ability to pay, the inability to pay due debts or expenses, as well as the emergence of insolvency of the economic phenomenon, including operational failure, commercial failure, technical insolvency, formal bankruptcy and so on. Early warning means knowing in advance and giving warning to avoid or minimize possible losses. Financial early warning requires managers to predict the upcoming problems in corporate finance based on changes in relevant indicators, and provide timely warnings to stakeholders.

First, the basic principles of financial early warning system

The fundamental function of the financial early warning system is to forecast the future direction of the development trend of business operations and financial activities, because it is called early warning system, so its focus is not used to? The main focus of the system is not to be used for? Report worry? This is the most important goal of the financial early warning system, that is, the purpose of the establishment of the enterprise financial early warning system, is to focus on the enterprise's entire business and financial activities may lead to a financial crisis in a variety of behaviors and activities, as well as their characteristics and performance indicators and so on. In order to provide scientific and reasonable early warning signals, the financial early warning system must have the function of monitoring and identifying functions, the former mainly study how to implement effective monitoring and control of the whole process of business and financial activities; and the latter's function is how to identify through an effective system based on pre-set relevant early warning control standards to determine the monitored indicators and characteristics of all business and financial activities, whether or not it is within the scope of its control, and for those who exceed the control standards, the financial early warning system can be used for the purpose of monitoring the financial crisis. The function of the latter is to determine, through an effective identification system based on pre-set relevant early warning control standards, whether all the monitored indicators and characteristics of operational and financial activities are within the scope of its control, and to inform the corresponding decision-making authorities in a timely manner about the financial indicators and activities that are beyond the control standards. In order to ensure the effective implementation of its functions, the financial early warning system must ensure the relative independence of its status, the effectiveness of the early warning indicators, the structure of the perfect and timely transmission of information and other requirements.

The establishment of the enterprise financial early warning system, in addition to the timely forecast of the various types of financial crisis signals that may occur in the enterprise, there is to help enterprises effectively avoid the various financial crises that may occur in the enterprise. The idea of avoiding financial risk should be throughout the early warning system, specifically in two aspects: one is the early warning indicators have been set to reflect and meet the basic requirements of financial crisis avoidance; second, the different nature of the financial crisis should be reflected in different financial early warning indicators.

Second, the framework of the enterprise financial early warning system

1. Establishment of the enterprise early warning system

The enterprise financial early warning system is based on enterprise information technology, the enterprise in the operation and management activities of the potential risks of real-time monitoring system. It runs through the whole process of business activities, based on the enterprise's financial statements, business plans and other relevant financial information, the use of accounting, finance, business management, marketing and other theories, the use of proportionality analysis, mathematical modeling and other methods, to find the risk of the existence of the enterprise, and to the operator to show the alarm. Financial early warning system mainly includes the following components: financial information collection and transmission mechanism, financial early warning analysis of the organizational mechanism, financial risk analysis mechanism, financial risk treatment mechanism. However, in order to achieve timely, effective and accurate early warning of the potential dangers of the enterprise, relying only on the financial early warning system itself is not enough, so we need to expand the study of the enterprise financial early warning system, that is to say, to build the enterprise early warning system. The construction of enterprise financial early warning system refers to the use of non-financial indicators, financial indicators as the core of the information feedback network, to strengthen financial supervision and control, so as to ensure that the production and management of a virtuous cycle of the operating system. It is composed of various interrelated subsystems constitute an organic whole, is an effective method of enterprise financial management system.

2. Early warning system framework design

There are two main methods of early warning system design: the first is the empirical method, whose main idea is to combine the results of empirical research, decompose the indicators in the prediction model to the lowest level, and then track the indicators in the lowest level, and use the early warning model to judge the financial situation of the enterprise. This method is relatively complex, every fiscal year, we need to reconstruct the early warning model, and then according to the early warning model selected financial indicators for decomposition, so as to build the enterprise early warning system; the second is the historical experience method, the main idea is based on the enterprise's past experience, set each early warning sub-system financial indicators, and then according to the past data (generally use the average value of the previous three years) to judge the strengths and weaknesses of this year's financial indicators, and then use the average value of the previous three years to judge the financial condition of the enterprise. This year's financial indicators are good or bad, and according to the weighting coefficients to discern the early warning subsystems and early warning system warning signals. This method is relatively strong applicability, but because it is not supported by empirical data and lack of economic theory, so the selection of indicators and the setting of weights there is a great deal of subjectivity and arbitrariness, the precision of its early warning is not as good as the first method.

3. The implementation process of the enterprise early warning system

(1) Determination of the warning interval and dimensionless processing of pre

The key to the early warning system lies in the determination of the warning interval. For the qualitative early warning subsystem, since there is no corresponding financial indicators, we can only take the balanced scorecard, through the scoring system to determine the implementation of the indicators.

(2) Early warning system sensitivity analysis

Another very important part of the early warning system is sensitivity analysis. Sensitivity analysis refers to the extent to which changes in financial and non-financial indicators of the enterprise's impact on the early warning results. Changes in important indicators will have a greater impact on the enterprise, while changes in minor indicators will have a smaller impact. The importance of the indicators is actually the weight of the enterprise indicators.

(3) Early warning system implementation should pay attention to the problem

Specific implementation, we also need to pay attention to a number of related issues: to strengthen information management; coordination of the relationship between the various sub-systems; correctly deal with the relationship between the early warning system and the other management system; the development of early warning intervals of the enterprise; improve the system of internal monitoring; the establishment of the early warning analysis, decision-making, reflecting, implementing operation mechanism; analyze the causes, seize the key, the right medicine; business managers on the early warning system; risk control concepts promoted to all employees.

4. The daily monitoring of the early warning system

As mentioned earlier, the financial early warning as long as the financial indicators are from the annual report of the enterprise, which makes the enterprise's financial early warning work can only be carried out once a year. In this way, it will not be able to meet the requirements of the timeliness of the early warning system. And the applicability and usefulness of an untimely early warning system will be greatly reduced. Therefore, we need to implement daily monitoring of the enterprise early warning system. The object of daily monitoring of the enterprise financial early warning system is the enterprise's financial risk and operational risk, because they are the root cause of the enterprise financial crisis. The financial risk monitoring includes: the monitoring of core financial indicators, financial payment risk monitoring and financial structure risk monitoring; and operational risk monitoring includes: strategic risk monitoring, management risk monitoring, internal control risk monitoring and market risk monitoring. In the selection of specific financial indicators, we should pay more attention to cash flow indicators. Because the occurrence of financial crisis does not depend entirely on the level of profitability, but more dependent on the size of the cash flow.

5. Establishment of early warning mechanism for financial failure

The so-called early warning mechanism for financial failure refers to the continuous and effective monitoring of the daily financial operation of the enterprise to prevent the deterioration of the enterprise's finances to the creditors' losses. As a tool for enterprise financial diagnosis, the higher the sensitivity of enterprise financial failure early warning, the earlier the problem can be detected, so that creditors can take countermeasures in advance to avoid the credit risk caused by the enterprise financial crisis. Enterprise financial failure early warning mechanism should be constructed with theoretical scientific and practical operability as the basic requirements, a good monitoring environment and healthy corporate culture as the premise of the foundation, to improve the institutional system and strict constraints as the basic framework, strict risk monitoring and efficient verification as an important means of scientific organization and excellent practitioners as the fundamental guarantee.

Third, the concluding remarks

As the saying goes? The sky has unpredictable wind clouds, people have to worry about the morning and evening?

As the saying goes? Therefore, enterprises must establish an effective financial early warning system to timely warn the business and financial activities of various risk factors, and effectively take the necessary improvement measures, will inevitably make the enterprise invincible in the future competition.