Currently, the issues of insolvency and optimal financial situation of companies become increasingly topical. Simultaneously the company's crisis management with all its elements, including crisis diagnostics, have not been sufficiently studied yet. The object of the research is company's financial crisis diagnostics, the subject-methods of company's financial crisis diagnostics. The aim of the study-to carry out theoretical analysis of the company's financial crisis diagnostics in the view of insolvency prevention-is achieved applying monographic or descriptive research method, comparative analysis methods, as well as employing qualitative, grouping, and graphical methods. As a result of the research, the authors have concluded that a status of company's insolvency, which can be characterized by the company's inability to perform its commitments and by predominance of the company's liabilities over its assets, is the last and the most severe stage of financial crises, mostly deriving from a long-term reluctance by the management to react to the current financial crisis in the company. Thus, one of the company's insolvency prevention options shall be timely detecting of symptoms of the company's financial crisis in its early stages-that is a priority objective of the crisis diagnostics. Crisis diagnostics is a systematic application of a several different (usually financial) models to assess the company's status and to identify possible symptoms of the crisis. Early detection of the crisis indications significantly increases possibilities of saving the company's assets.

In recent years, an increasing role is played by innovation in the operation of companies as well as there is a constant need for new scientific research studies on innovation in crisis management.The research aim of the paper is examine the theoretical aspects of innovation in crisis management.The present research employed the following methods: analysis and synthesis, induction and deduction, document analysis and the monographic and graphic methods.The research results showed that in crisis management, innovations are classified into two categories: crisis and developmental innovations. The key indication of a crisis innovation is a solution to the company’s survival and economic process stabilisation. The purpose of a developmental innovation is to raise the competitiveness of a product or the whole company in the nearest future in order to avoid a projected and potential company crisis.Innovations aimed at overcoming a crisis could be associated with various company management and activity areas, beginning with production and sales processes through to management and control mechanisms.

At present, a company's crisis management becomes an urgent issue worldwide, while in Latvia crisis diagnostics and management have not been sufficiently studied thus far. A financial crisis expanding in the company causes significant problems to the company's economic and growth processes, and can turn into a bankruptcy, when the only solution would be the company's liquidation. Instead, early detection of crisis significantly increases the possibilities of solving the company's financial crisis, saving assets and future development opportunities. The aim of the research is to carry out a comparative analysis of basic financial crisis diagnostic systems, revealing their essential substance and possibilities of application. To achieve the aim of the research, a range of methods – monographic, comparative and content-analysis, grouping and graphical methods – were used. In the result of the research, the authors have come to the conclusion that, in the case a practical necessity for timely diagnosis of signs of a company’s financial crisis exists, the theory offers two basic systems differing by their general objectives and implementation methods.

Nowadays, under a free market, crises at companies are a frequent phenomenon; however, anti-crisis management and related aspects are currently a little researched problem in Latvia. The research aim is to examine the nature of company crisis diagnosis and its role and importance in the anti-crisis management system. The research general tasks are: to describe the nature of company crisis diagnosis and review the scope, purpose and tasks of performing a diagnosis; to examine the role and importance of company crisis diagnoses in the company's anti-crisis management system. To achieve the aim, the following research methods were employed: monographic, descriptive, comparison as well as analysis. The present research performed an analysis of the definitions of company crisis diagnosis, an examination of the scope of purposes and tasks of performing a diagnosis; it defined the crisis diagnosis as the systematic application of several different (usually financial) models aimed at assessing the situation of the company, as well as the discovery of indications of a potential crisis. Also, the role and importance of diagnosis of a crisis at a company in its anti-crisis management were determined stressing the fact that crisis diagnostic is a source of high-quality and credible information about the real situation and the availability of resources as well as the basis for carrying out further anti-crisis activities and making decisions both during the process of crisis prevention and within the overall company management system.

The insolvency of enterprises is an integral element of free market. Since Latvia regained its independence, this problem has been urgent for Latvia’s economy as well. It has to be noted that the problem of enterprise insolvency is mainly researched as a separate phenomenon, which could be a strong destructive factor for both the national economy and the economy of an individual business entity. However, there is a methodologically distinctive research direction that associates insolvency with the term enterprise crisis. Anyway, it is important to be aware of real situation characteristics. Therefore, the present research identifies and analyses the theoretical frameworks of enterprise insolvency as well as examines the current situation of insolvency cases in Latvia.