For any industry it’s crucial to have a sound process for managing risk and assets in place. This is especially true in the financial industry, since insurers rely on the premiums they collect from policyholders to invest in assets to https://expertalmanagement.de/2021/12/29/the-importance-of-asset-management/ generate revenue and maintain their viability. Assets can be volatile, and it’s essential for investors to manage their investments with care – this includes knowing when to take more risk or less risk to achieve their objectives.

A sound asset and risk management strategy is vital for resource and energy companies to protect assets and increase ROI over their lives. This means identifying and taking into account the risks associated with an organization’s assets – including physical assets, like equipment and buildings, as well as intangible assets, such as intellectual property and data.

The first step is to identify and identify its assets. Ideally, each named asset should have an owner within the organization who has oversight and responsibility over it. They should be aware of the risks associated with their assets and are able to reduce those risks effectively. These people should be consulted by the risk management department to review the possibility of threats and vulnerabilities.

From there, a business should prioritize the identified risks. This is usually dependent on the probability of the risk’s occurrence as well as the impact of each risk on the business. Risks with the highest priority should receive the most security implementation, investment, and attention. Other risks need to be addressed in accordance with the company’s operational requirements and compliance with regulatory requirements.