In every industry it’s crucial to have a well-functioning asset and risk management process in place. This is particularly true in the financial sector, where insurers invest the money they collect from policyholders into assets to generate income and maintain solvency. Assets can be volatile, and it is essential that investors are able to manage their investments effectively. This means knowing when to take on risk or take https://expertalmanagement.de/2021/09/01/top-horrible-features-to-avoid-when-buying-a-laptop-for-play-or-work a lower risk to reach their goals.
In addition, an effective asset and risk management process is essential for energy and resource companies to safeguard their assets and get the highest ROI throughout their lifespan. This involves the identification, assessment, and managing the risks that come with assets of an organization which includes tangibles such as equipment and buildings, as well as intangibles like intellectual property or data.
A company should first identify and name all its assets. In the ideal scenario, each asset should have a person in the organization with responsibility and authority over it. They are the ones who are most familiar with the risks associated with their respective assets and can help to mitigate them effectively. The risk management department needs to work with these stakeholders to assess potential threats and vulnerabilities.
The company can then prioritize the risks identified. This is typically by assessing the probability of the risk occurring and its impact on the business. Priority risks should receive the greatest attention, investments, and security implementation. Other risks should be considered by focusing on the company’s operational requirements and compliance with regulatory requirements.