Research on the Grading Model of Financial Risk Alarm Condition Based on Extension Discrimination

According to the basic principle and method of extension discrimination, this paper constructs an extension discrimination grading model of enterprise´s financial risk alarm condition based on the financial risk monitoring indicators. Then it measures and grades the financial risk alarm condition of some listed companies using financial indicators. The model and method will supply a management tool of financial risk for the investors´ decision, securities market management department´s supervision and internal managers´ management.