It is important for any business to have a procedure that efficiently manages assets and risks. This is particularly true for the financial sector, as insurers invest the premiums they receive from policyholders in assets to generate revenue and keep solvency. Assets are prone to volatility, therefore it is crucial that investors are able to manage their investments effectively. This includes knowing when to take on more risk or less risk in order to reach their goals.
A solid asset and risk management strategy is vital for resource and energy businesses to safeguard assets and maximize ROI over the course of their lifespan. This means identifying and analysing the risks posed by the assets of an organization, including physical assets such as equipment and buildings, as well as intangibles, such as intellectual property and data.
The business must first determine and name all its assets. Ideally, each asset should be assigned a named owner who is accountable and has authority over it. They are the people who are most familiar about the risks that come with their particular assets and can reduce them effectively. These people should be consulted by the risk management department to assess the potential threats and vulnerabilities.
The business is then able to prioritize the risks that are identified. This is typically determined by the probability of occurrence and the impact of each risk on the business. Risks that are most critical should receive the greatest security implementation, attention and investment. Other risks should be addressed in accordance https://expertalmanagement.de/2020/12/26/vermogensverwaltung with the company’s operational requirements and compliance with regulatory requirements.