It is essential for any industry to have a method that efficiently manages assets and risks. This is especially true in the financial https://expertalmanagement.de/2022/06/21/expedite-an-ma-process-with-the-data-room-for-due-diligence/ sector, as insurers invest the premiums they receive from policyholders into assets to generate income and maintain solvency. Assets are volatile, so it is crucial that investors manage their investments properly. This includes knowing when to take on more risk or less risk to meet their goals.

In addition, an effective process for managing risk and assets is crucial for companies in the fields of energy and resources to protect their assets and earn the highest ROI over their lifecycle. This includes the identification, assessment, and managing the risks associated with assets owned by an organization including tangible assets like equipment and buildings, as well as intangibles such as intellectual property and data.

A company should first identify and name all its assets. Ideally, each named asset should have an owner within the organization that has the authority and responsibility for it. These individuals are most familiar about the risks that come with their specific assets and are able to mitigate them effectively. These stakeholders should be consulted with the risk management department to assess the risk and vulnerability.

The business is then able to prioritize the risks identified. This is usually done by assessing the probability of the risk occurring and its impact on the business. The most important risks need the greatest security implementation, attention and investment. Other risks should be addressed according to the business’s operational requirements and compliance with regulatory requirements.