Asset and Risk Management for Energy and Resources Companies

For any business it’s essential to have an effective asset and risk management process in place. This is particularly true for the financial sector, where insurers put the premiums they earn from policyholders into assets to generate revenue and ensure the financial viability of their business. Assets can be volatile, and it is crucial https://expertalmanagement.de/2021/12/29/the-importance-of-asset-management that investors take care of their investments. This means knowing when to take on more risk or less risk to meet their goals.

A good asset and risk management system is also essential for energy and resource companies to protect assets and increase ROI over the course of their lives. This means the identification, assessment, and managing the risks that come with assets of an organization that include tangibles such as equipment and buildings as well intangibles like intellectual property and data.

First, a company should identify and identify its assets. Ideally, each asset should be given a name and a designated owner who is accountable and has authority over it. They are the people who are most familiar of the risks associated with their specific assets and are able to help to mitigate them effectively. The risk management department must work with these stakeholders to assess the risks and vulnerabilities that could be present.

Then, a business should prioritize the identified risks. This is usually done based on the likelihood of the risk happening and its impact on the business. Risks that are most critical require the highest level of security implementation, attention and investment. Other risks should be considered based on the business’s operational requirements and regulatory compliance.