For any industry it is essential to have a successful process for managing risk and assets in place. This is particularly true his explanation in the financial sector, where insurers invest the premiums they receive from policyholders in assets to generate revenue and maintain the viability of their businesses. Assets can be volatile, and it’s essential for investors to manage their investments wisely – this includes knowing when to take more risk or risk less to achieve their goals.
Additionally, a successful process for managing risk and assets is essential for companies in the fields of energy and resources to safeguard their assets and ensure the highest ROI over their lifespan. This entails being aware of, assessing and addressing the risks associated with the assets of an organisation which includes tangibles such as buildings and equipment and intangibles like intellectual property and data.
First, a business must identify and identify its assets. In the ideal scenario, each asset would be given a name and a designated owner who is accountable and has authority over the asset. They are aware of the risks associated with their assets and are able to mitigate those risks effectively. The risk management team should work with these stakeholders in order to determine the risks and vulnerabilities that could be present.
From there, a company must prioritise the identified risks. This is typically in relation to the likelihood of the risk happening and its impact on the business. Priority risks should receive the greatest attention, the investment and security implementation. Other risks should be addressed in accordance with the company’s operational requirements and regulatory compliance.
