In every industry it’s crucial to have a sound asset and risk management process in place. This is particularly true for the financial sector, as insurers invest the money they collect from policyholders into assets to generate income and maintain the company’s financial stability. Assets are volatile, so it is vital that investors take care of their investments. This means knowing when to take more or less risk to meet their goals.
Furthermore, a thorough process for managing risk and assets is crucial for companies in the fields of energy and resources to protect their assets and earn the highest ROI throughout their lifespan. This means identifying and taking into account the risks associated with an organization’s assets – including physical, such as equipment and buildings, as well intangible, like intellectual property and data.
First, a business must identify and name its assets. Ideally, each asset should be assigned a named owner who is accountable and has authority over it. They are the ones who are most familiar with the risks associated with their particular assets and can mitigate them effectively. These individuals should be consulted by the risk management department to review possible threats and vulnerabilities.
Then, a business must prioritise the identified risks. This is typically in relation to the likelihood of the risk happening and its impact on the business. Risks that are most important should be given the most attention, as well as investing in security, and implementing it. The other risks should be addressed if needed and while taking into account the company’s needs for operations and regulatory compliance.