It is crucial for any sector to have a system that efficiently manages assets and risks. This is especially true in the financial sector, where insurers use the premiums collected from policyholders to invest in assets in order to generate revenue and maintain their viability. Assets are prone to volatility, so it’s important for https://expertalmanagement.de/2021/12/29/risk-assessment-in-business these investors to manage their investments wisely which includes knowing when to take on more risk or lower risk to reach their goals.

A good asset and risk management strategy is essential for energy and resource companies to protect assets and increase ROI over the course of their lifetime. This includes identifying and analysing the risks posed by an organization’s assets – including physical, such as equipment and buildings, as well as intangibles like intellectual property and data.

A company should first identify and name all its assets. Idealy, each asset should be assigned a named owner who is accountable and has authority over it. These individuals are most familiar of the risks associated with their assets and are able to help to mitigate them effectively. The risk management department needs to collaborate with these stakeholders to identify potential threats and vulnerabilities.

From there, businesses should prioritize the risks identified. This is usually dependent on the probability of the risk’s occurrence as well as the impact of each risk on the business. Risks that are most critical require the highest level of security implementation, investment, and attention. Other risks should be addressed in accordance with the company’s operational requirements and regulatory compliance.