It is crucial for any business to have a procedure that effectively manages assets and risks. This is particularly true in the financial sector, where insurers put the premiums they earn from policyholders in assets to generate revenue and ensure the viability of their businesses. Assets can be volatile, which is why it’s crucial for investors to be able to manage their investments effectively This includes knowing when to take on more risk or risk less to reach their goals.
Additionally, a successful asset and risk management process is crucial for companies dealing with energy and resources to protect their assets and get the highest ROI over their lifecycle. This means identifying, assessing, and assessing the risks associated with the assets of an organization which includes tangibles such as equipment and buildings as well as intangibles like intellectual property or data.
First, a business should identify and identify its assets. In the ideal scenario, each asset should have a person in the organization that has responsibility and authority over it. These individuals are most familiar of the risks associated with their respective assets and can manage them effectively. The risk management team should work with these stakeholders to assess the possibility of threats and vulnerabilities.
From there, a company should prioritize the risks identified. This is usually based on the probability of the risk’s occurrence as well as the impact of each risk on the business. Priority risks should receive the most attention, along with investing in security, and implementing it. Other risks should be addressed as needed with consideration of the company’s operational requirements and regulatory compliance.
https://expertalmanagement.de/2021/12/29/the-importance-of-asset-management