The Research Of The Corporate Early-Warnning System Based On BSC

Under the condition of market economy, because of the uncertainty of operating environment and constraint ability that people have on it, it is inevitable that the corporation will confront with operation risk. Then, how to establish the corporate early-warning system, which can help the corporation take effective measurements to avoid operating crisis in advance and realize its enduring development, has become a very actual subject. In the past, the research of the corporate early-warning system only focused on financial factors, but ignored other non-financial factors, for example, marketing share, customer catching and maintenance R&D investment, staff quality, and so on, all these factors also day by day become the corporate key aspects which are considered in the daily management and the guard risk, which are also involved in the framework of Balanced Score Card. So, the framework of Balanced Score Card may provide a brand-new thought for the research of the corporate early-warning system based on BSC. In this article, we first make a research on the corporate early- warning theory and the theory of BSC, and determine the early-warning method of this system. Then, in view of multiple perspectives of BSC, we try to set up the preliminary evaluation index system on which quantitative and qualitative methods are used in pulsating the preliminary one to get the ultimate early-warning index system, this article sets index weights by the method which incorporate subjective method with objective method to overcome the deficiency caused by using either of them only, finally use the sector estimation to determine early-warning sector, and realize individual index early warning and synthesis index early warning. The innovation of this article lies in constructing the corporate early-warning index system and the method of power determination. The contribution of this article in theory lies in the integrating of evaluation methods, and its guidance to the setting of early-warning system for common enterprise is its role in reality. It also helps the enterprise improve its risk awareness.