It is essential for any business to have a procedure that effectively manages assets and risks. This is especially true in the financial sector, as insurers rely on the premiums they collect from policyholders to invest in assets to generate revenue and maintain their viability. Assets are volatile, so it is vital that investors are able to manage their investments effectively. This includes knowing when to take more or less risk to reach their goals.
A solid asset and risk management system is also vital for resource and energy companies to protect assets and increase ROI over their lifespan. This includes identifying and assessing the risks associated with the company’s assets, which include physical assets, like equipment and buildings, and intangible, like intellectual property and data.
The business must first determine and name all of its assets. Ideally, each asset named should have an owner within the organization that has the responsibility and authority over it. They are the people who are most familiar about the risks that come with their assets and are able to help to mitigate them effectively. The risk management department needs to work with these stakeholders to determine potential threats and vulnerabilities.
From there, a business should prioritize the identified risks. This is typically based on the probability of occurrence and the impact of each risk on the business. Risks that are most critical should receive the most security implementation, investment and attention. The other risks should be addressed if necessary and https://expertalmanagement.de/2022/06/21/expedite-an-ma-process-with-the-data-room-for-due-diligence while taking into account the business’s operational needs as well as regulatory compliance.
