In any industry it is essential to have a well-functioning asset and risk management process in place. This is especially true in the financial sector, as insurers put the premiums they earn from policyholders in assets to generate income and maintain the viability of their businesses. Assets are prone to volatility, therefore it is essential that investors take care of their investments. This includes knowing when to take more or less risk in order to reach their goals.
Additionally, a successful process for managing risk and assets is vital for energy and resource companies to protect their assets and achieve the highest ROI throughout their lifespan. This entails identifying, assessing, and assessing the risks associated with the assets of an organisation, including tangibles like equipment and buildings, as well as intangibles like intellectual property or data.
First, a business should identify and name its assets. Ideally, each asset named should have a person in the organization who has the responsibility and authority over it. They are aware of the risks that are associated with their assets and can manage those risks effectively. These people should be consulted by the risk management department in order to determine the potential threats and vulnerabilities.
From there, a business must prioritize the risks that are identified. This is typically dependent on the probability of occurrence and the effect of each risk on the business. Priority risks should receive the greatest attention, investment, and security implementation. Other risks must be addressed as needed while considering the company’s needs for operations and regulatory compliance.