In any industry, it’s critical to have a successful asset and risk management process in place. This is especially true in the financial sector, where insurers invest the premiums they receive from policyholders in assets to generate income and maintain the financial viability of their business. Assets are volatile, which is why it is essential that investors manage their investments properly. This includes knowing when to take on more risk or less risk in order to reach their goals.
Furthermore, a thorough process for managing risk and assets is vital for energy and resources companies to safeguard their assets and get the highest ROI throughout their lifecycle. This includes identifying and assessing the risks that are associated with the assets of an organization, including physical assets such as equipment and buildings, as well as intangible, like intellectual property and data.
The first step is to identify and name its assets. Idealy, each asset should be given a name and a designated owner who is accountable and has authority over it. They are the people who are most familiar about the risks that come with their particular assets and can help to mitigate them effectively. The risk management team should work with these stakeholders to assess the risks and vulnerabilities that could be present.
The business is then able to prioritize the risks identified. This is usually official site based on the probability of occurrence and the impact of each risk on the business. Priority risks must be given the most attention, including investments, and security implementation. Other risks must be addressed if necessary, while taking into consideration the company’s needs for operations and regulatory compliance.