It is essential for every business to have a procedure that efficiently manages assets and risks. This is particularly true for the financial industry, since insurers rely on the premiums they collect from policyholders to invest in assets in order to generate revenue and ensure their viability. Assets are volatile, so it is essential that investors are able to manage their investments effectively. This means knowing when to take on more risk or less risk to meet their goals.
A well-designed asset and risk management system is vital for resource and energy businesses to safeguard assets and increase ROI over the course of their lifetime. This involves identifying and analysing the risks posed by the assets of an organization, including physical assets such as equipment and buildings, as well intangible assets, such as intellectual property and data.
First, a company should identify and identify its assets. Idealy, each asset should be given a name and a designated owner who is accountable and has authority over it. These individuals know the risks associated with their property and can reduce the risks effectively. The risk management department should work with these stakeholders to identify the risks and vulnerabilities that could be present.
The business then has the ability to determine the risk that is most important to them. This is usually based on the probability of their occurrence and the potential impact of each risk on the business. Priority risks should receive the greatest attention, investment, and security implementation. Other risks should be addressed as needed and while taking into account the business’s operational needs and regulatory compliance.
