Asset and Risk Management for Energy and Resources Companies

It is essential for every sector to have a system that effectively manages assets and risks. This is especially true in the financial industry, since insurers make use of the premiums from policyholders to invest in assets in order to generate revenue and ensure their solvency. Assets are prone to volatility, therefore it is important that investors take care of their investments. This means knowing when to take on more or less risk in order to achieve their goals.

Additionally, a well-designed asset and risk management process is crucial for energy and resources companies to safeguard their assets and achieve the highest ROI over their lifecycle. This involves identifying, assessing, and addressing 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.

First, a company should identify and name its assets. In the ideal scenario, each asset should have a person in the organization who has the authority and responsibility for it. These individuals are most familiar of the risks associated with their particular assets and can mitigate them effectively. These stakeholders should be consulted with the risk management department to evaluate the possibility of threats and vulnerabilities.

From there, a business should prioritize the identified risks. This is typically by assessing the probability of the risk arising and its impact on the business. Priority risks should be given the most attention, as well as investments, and security implementation. The other risks should be addressed if necessary https://expertalmanagement.de/2021/09/01/what-is-voip-a-guide-for-business while considering the business’s operational needs as well as regulatory compliance.