For any business it is essential to have a sound asset and risk management process in place. This is especially true for the financial sector, where insurers rely on the premiums they collect from policyholders to invest in assets in order to generate revenue and maintain their financial stability. Assets can be volatile, and it is crucial that investors take care of their investments. This means knowing when to take on risk or take a lower risk to meet their goals.

A sound asset and risk management system is essential for energy and resource businesses to safeguard assets and increase ROI over their lifespan. This includes identifying and assessing the risks that are associated with an organization’s assets – including physical, such as equipment and buildings, and intangibles like intellectual property and data.

First, a business must identify and identify https://expertalmanagement.de/2021/12/29/the-importance-of-asset-management its assets. Ideally, each named asset should have an owner within the organization with the responsibility and authority over it. They are the people who are most familiar of the risks associated with their specific assets and are able to help to mitigate them effectively. The risk management department must work with these stakeholders to identify the possibility of threats and vulnerabilities.

Then, a business must prioritize the risks that are identified. This is typically by assessing the probability of the risk happening and its impact on the business. Priority risks should receive the most attention, along with investment, and security implementation. The other risks should be addressed if necessary, while taking into consideration the business’s operational needs and regulatory compliance.