Research On Construction Of Financial Early-Warning System Base On Case-based Reasoning And Balanced Scorecard

Nowadays there are more and more uncertainties in the environment. There exist various crises in enterprise management. Therefore enterprise as a whole has to make adjustment in every aspect to the latest situation. If enterprises are still running in a traditional model which makes unified arrangements at the end of a year, it probably causes a lot of unnecessary losses. Modern enterprises should maintain a high degree of environmental sensitivity, and always prepare to respond to crises.It has great meaning to create an effective financial early-warning system which can enhance the enterprise's capability of risk management. At present, the majority of research of financial early-warning system is seldom from the perspective of one company, and there is a lack of risk control suggestion.With case-based reasoning and balanced scoreboard, this dissertation creates a complete financial early-warning system which includes early-warning and solution. Balanced scorecard can combine the financial indexes with the non-financial indexes, and measure whether enterprise is running in accordance with pre-established strategy. Non-financial indexes which are good complement to financial indexes can enhance the precision of financial early-warning. Case-based reasoning can learn from the past financial cases, and do not have to use logical reasoning to reach conclusion. It can easily use the original financial cases to provide beneficial information for decision-making. Case-based reasoning can use existing software to facilitate the realization of operation, and provide a good platform for practical application. The financial early-warning system created by this dissertation can provide a valuable management tool for managers to enhance the capability of risk recognition and control.Through demonstration study at the end of this dissertation, we can see this is a practical way to create a financial early-warning system which can enhance the capability of risk control.