It is essential for any business to have a procedure that effectively manages assets and risks. This is especially true for the financial industry, where insurers rely on the premiums they collect from policyholders to invest in assets to generate revenue and ensure their viability. Assets can be volatile, so it is crucial for investors to take care of their investments which includes knowing when to take more risk or take fewer risks to reach their goals.
A well-designed asset and risk management system is essential for energy and resource companies to protect assets and increase ROI over the course of their life. This involves identifying and assessing the risks associated with the company’s assets, which include physical assets like equipment and buildings, and intangible assets, such as intellectual property and data.
A company should first identify and name all of its assets. Ideally, each named asset should have a person in the organization with responsibility and authority over it. They are the ones who are most familiar of the risks associated with their respective assets and can manage more info here them effectively. The risk management department should work with these stakeholders in order to determine potential threats and vulnerabilities.
Then, a business should prioritize the identified risks. This is typically in relation to the likelihood of the risk arising and its impact on the business. Priority risks must be given the greatest attention, investment, and security implementation. Other risks should be addressed as needed with consideration of the company’s operational requirements and regulatory compliance.
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