For any industry, it’s critical to have an effective process for managing risk and assets in place. This is particularly true in the financial sector, as insurers invest the premiums they receive from policyholders in assets to generate income and maintain the viability of their businesses. Assets are prone to volatility, so it’s important for these investors to manage their investments with care This includes knowing when to take more risk https://expertalmanagement.de/2021/09/01/top-horrible-features-to-avoid-when-buying-a-laptop-for-play-or-work/ or risk less to reach their goals.
A good asset and risk management system is also vital for resource and energy companies to protect assets and maximize ROI over the course of their lifespan. This includes identifying and analysing the risks posed by the assets of an organization, including physical assets like equipment and buildings, as well as intangible assets, such as intellectual property and data.
First, a company should identify and name its assets. The ideal is that each asset should have an owner within the organization that has the authority and responsibility for it. They are the ones who are most familiar of the risks associated with their particular assets and can help to mitigate them effectively. The risk management department must collaborate with these stakeholders to determine the risks and vulnerabilities that could be present.
The business is then able to prioritize the risks that are identified. This is usually determined by the probability of occurrence and the effect of each risk on the business. Priority risks should be given the greatest attention, the investment and security implementation. Other risks should be addressed as needed while considering the business’s operational needs as well as regulatory compliance.
