It is crucial for any industry to have a method that effectively manages assets and risks. This is particularly true for the financial sector, as insurers put the premiums they earn from policyholders in assets to generate revenue and keep the company’s financial stability. Assets are prone to volatility, therefore it is essential that investors take care of their investments. This means knowing when to take on more risk or less risk in order to achieve their goals.
A well-designed asset and risk management system is also vital for resource and energy companies to protect assets and maximize ROI over the course of their lives. This means finding, assessing, and managing the risks that come with assets owned by an organization including tangible assets like equipment and buildings, as well as intangibles like intellectual property or data.
The business must first determine and name all its assets. In the ideal scenario, each asset should have a person in the organization who has the responsibility and authority over it. They are the people who are most familiar about the risks that https://expertalmanagement.de/2021/12/29/the-importance-of-asset-management/ come with their specific assets and are able to reduce them effectively. The risk management department needs to work with these stakeholders to identify potential threats and vulnerabilities.
The business then has the ability to prioritize the risks identified. This is usually determined by the probability of occurrence and the impact of each risk on the business. Risks that are most critical need the greatest security implementation, investment and attention. Other risks must be addressed according to the business’s operational requirements and regulatory compliance.