For any industry it is essential to have a successful asset and risk management process in place. This is particularly true for the financial sector, as insurers invest the premiums they collect from policyholders into assets to generate income and maintain solvency. Assets can be volatile, so it’s important for these investors to manage their investments with care and know when to take more risk or lower risk in order to achieve their goals.
A good asset and risk management strategy is essential for energy and resource businesses to safeguard assets and maximize ROI over the course of their life. This includes finding, assessing, and addressing the risks associated with assets of an organization including tangible assets like equipment and buildings as well as intangibles like intellectual property and data.
First, a business should identify and name its assets. Ideally, each asset should be assigned a named owner who is accountable and has authority over the asset. They are the most knowledgeable with the risks associated with their respective assets and can manage them effectively. These people should be consulted by the risk management department in order to determine possible threats and vulnerabilities.
From there, a business must prioritise the identified risks. This is usually in relation to the likelihood of the risk occurring and its impact on the business. Priority risks should be given the most attention, including investing in security, and implementing it. Other risks should be considered in accordance with the company’s operational requirements and compliance with regulatory requirements.