In any industry it is essential to have a successful asset and risk management process in place. This is particularly true in the financial sector, where insurers use the premiums collected from policyholders to invest in assets in order to generate revenue and ensure their solvency. Assets are volatile, which is why it is vital that investors take care of their investments. This includes knowing when to take on more or less risk to meet their goals.
In addition, an effective asset and risk management process is crucial for companies dealing with energy and resources to protect their assets and ensure the highest ROI throughout their lifecycle. This includes identifying and analysing the risks posed by the assets of an organization, including physical assets like buildings and equipment, 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 an owner within the organization with oversight and responsibility over it. They are aware of the risks associated with their property and can manage those risks effectively. These stakeholders should be consulted by the risk management department in order to determine the possibility of threats and vulnerabilities.
From there, a company should prioritize the risks identified. This is typically based on the probability of occurrence and the impact of each risk on the business. Priority risks must be given the greatest attention, the investment and security implementation. The other risks should be addressed if necessary, while taking into consideration the business’s operational needs and regulatory compliance.
https://expertalmanagement.de/2021/12/29/risk-assessment-in-business/
