It is important for any business to have a procedure that efficiently manages assets and risks. This is particularly true in the financial industry, where insurers rely on the premiums they collect from policyholders to invest in assets in order to generate revenue and ensure their solvency. Assets can be volatile, and it’s important for these investors to manage their investments with care – this includes knowing when to take more risk or less risk to achieve their objectives.
A solid asset and risk management system is vital for resource and energy companies to protect assets and maximize ROI over the course of their life. This means identifying and assessing the risks associated with the assets of an organization, including physical assets like https://expertalmanagement.de/2022/06/21/expedite-an-ma-process-with-the-data-room-for-due-diligence equipment and buildings, and intangible assets, such as intellectual property and data.
A company should first identify and name all of its assets. Ideally, each named asset should have a person in the organization with oversight and responsibility over it. These individuals are aware of the risks that are associated with their assets and can manage those risks effectively. The risk management department should collaborate with these stakeholders to assess potential threats and vulnerabilities.
The company can then prioritize the risks identified. This is typically based on the likelihood of the risk happening and its impact on the business. Risks that are most important should be given the most attention, along with investments, and security implementation. Other risks need to be addressed in accordance with the company’s operational requirements and compliance with regulatory requirements.