https://expertalmanagement.de/2021/12/29/the-importance-of-asset-management

In every industry it is essential to have an effective process for managing risk and assets in place. This is especially true in the financial sector, where insurers invest the money they collect from policyholders into assets to generate income and maintain the viability of their businesses. Assets can be volatile, and it is important that investors are able to manage their investments effectively. This means knowing when to take on more risk or less risk in order to reach their goals.

A well-designed asset and risk management strategy is vital for resource and energy companies to protect assets and increase ROI over their lifespan. This involves identifying and assessing the risks that are associated with an organization’s assets – including physical, such as equipment and buildings, and intangibles, such as intellectual property and data.

The first step is to identify and identify its assets. Idealy, each asset should be assigned a named owner who is accountable and has authority over it. They are the most knowledgeable with the risks associated with their respective assets and can help to mitigate them effectively. These individuals should be consulted by the risk management department to assess the risk and vulnerability.

The company can then determine the risk that is most important to them. This is usually done according to the probability of the risk arising and its impact on the business. Risks with the highest priority should receive the greatest security implementation, investment and focus. Other risks should be considered in accordance with the company’s operational requirements and compliance with regulatory requirements.