A Research On The Internal Report System On Financial Risk Early Warning

In the background of the contemporary market economy, enterprises are living in a complex environment, companies are unable to obtain all information which supports comprehensive grow, which determines the business will face some financial risk. In recent years, because of the financial crisis, the enterprise risk management, especially financial risk management has become the focus of attention. In the daily business operations of management, financial risk management is still being ignored by most Chinese enterprises, financial risks facing widespread. Paper selected financial risk warning as an entry point, through the study on the internal report on the financial risk early warning to achieve financial risk early warning, strengthen corporate financial risk management, improve business decision-making capabilities and control, thus promote enterprise management efficiency.In this paper, use standard research methods and case studies methods, use grounded theory on M city bus group to explore corporate financial management and internal reporting situation, the source of financial risk and conduction path, and then design all kinds of indicators and internal reporting, and get a theoretical model of financial risk early warning of combining internal reporting. Conclusion of theory and case studies to build financial risk early warning system of internal report system, achieving feedback and predictability on its function, timeliness and dynamic on its functional, comprehensiveness and flexibility on its form and diversity and hierarchy on its structural, to make sure integrate the financial risk early warning and internal reporting organically.The main contribution of this paper are the following points:First, use grounded theory to conduct case studies to explore internal reporting system on financial risk early warning, at the same time as an example of a similar problem counterparts to promote research. Second, expand of the traditional financial early warning model, explore financial risk attribution and pathways to establish internal report system on financial risk early warning system to achieve a comprehensive and dynamic early warning and analysis, and provide new research directions for the study of management accounting. Third, through the nature, purpose and functions to discuss the theoretical possibility on combining financial risk early warning and internal reporting. M City Bus Group in grounded theory case study as an example, to get the model structure of financial risk early warning with a combination of internal reporting and five core areas categories, and establish financial risk early warning of internal report system based on five core categories, including:the internal report on risk warning based on debt-paying ability, the internal report on risk warning based on profit ability, the internal report on risk warning based on operation capability, the internal report on risk warning based on development capability and the internal report on risk warning based on asset management capabilities...