Abstract: Financial alert is that uses business finance and non-business finance indicators to identify the financial situation of company.It usually consists of six different types,namely: univariate method,MDA,logic regression method,multivariate probit regression method,ANN and so on.The alert systems of domestic companies manily use the experience of foreign companies for reference,and can be divided into single-model and multi-model methods in a whole,but it also has three serious faults to be tackled in the special industry and the alert system of company itself.