In any industry it’s essential to have a sound asset and risk management process in place. This is particularly true in the financial sector, as insurers put the premiums they earn from policyholders into assets to generate revenue and ensure solvency. Assets are volatile, so it is important that investors manage their investments properly. This means knowing when to take more or less risk in order to achieve their goals.
A well-designed asset and risk management system is vital for resource and energy companies to protect assets and maximize ROI over their lives. This involves being aware of, assessing and addressing the risks associated with assets owned by an organization which includes tangibles such as equipment and buildings as well intangibles like intellectual property or data.
First, a business must identify and name its assets. In the ideal scenario, each asset should have an owner within the organization that has the responsibility and authority over it. These individuals are most familiar about the risks that come with their assets and are able to reduce them effectively. These people should be consulted by the risk management department to assess the potential threats and vulnerabilities.
From there, businesses should prioritize the identified risks. This is https://expertalmanagement.de/2020/12/26/vermogensverwaltung usually done by assessing the probability of the risk happening and its impact on the business. Risks that are most critical require the highest level of security implementation, investment, and attention. Other risks must be addressed based on the business’s operational requirements and regulatory compliance.