In any industry, it’s critical to have a successful asset and risk management process in place. This is especially true for the financial industry, since insurers make use of the premiums from policyholders to invest in assets in order to generate revenue and maintain their financial stability. Assets can be volatile, and it is crucial that investors take care of their investments. This means knowing when to take more or less risk in order to reach their goals.
A solid asset and risk management strategy is essential for energy and resource companies to protect assets and maximize ROI over the course of their lifetime. This involves identifying and taking into account the risks associated with an organization’s assets – including physical assets such as equipment and buildings, and intangible assets, such as intellectual property and data.
A company should first identify and name all of its assets. Idealy, each asset should be given a name and a designated owner who is risk assessment in business responsible and has authority over the asset. They are aware of the risks associated with their assets and can mitigate those risks effectively. The risk management department needs to collaborate with these stakeholders to assess the possibility of threats and vulnerabilities.
From there, a company must prioritise the identified risks. This is usually according to the probability of the risk occurring and its impact on the business. Priority risks should be given the most attention, along with the investment and security implementation. Other risks must be addressed in accordance with the company’s operational requirements and regulatory compliance.
