It is essential for any industry to have a method that effectively manages assets and risks. This is particularly true for 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 are volatile, which is why it is vital that investors are able to manage their investments effectively. This includes knowing when to take on risk or take a lower risk to reach their goals.
A sound asset and risk management program is vital for resource and energy businesses to safeguard assets and increase ROI over the course of their lifetime. This means identifying and assessing the risks that are associated with the company’s assets, which include physical, such as equipment and buildings, as well intangible assets, such as intellectual property and data.
The first step is to identify and identify its assets. Ideally, each named asset should have a person in the organization that has the authority and responsibility for it. They should be aware of the risks that are associated with their assets and manage those risks effectively. The risk management department needs to work with these stakeholders in order to identify the potential risks and vulnerabilities.
Then, a business should prioritize the identified risks. This is usually based on 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 must be addressed by focusing on the company’s operational requirements and regulatory compliance.
https://expertalmanagement.de/2021/12/29/risk-assessment-in-business/
