Asset and Risk Management for Energy and Resources Companies

It is essential for every industry to have a method that efficiently manages assets and risks. This is particularly true in the financial sector, as insurers invest the premiums they receive from policyholders into assets to generate revenue and maintain the company’s financial stability. Assets are volatile, so it is important that investors manage https://expertalmanagement.de/2021/12/29/risk-assessment-in-business their investments properly. This includes knowing when to take on more risk or less risk in order to reach their goals.

A well-designed asset and risk management program is vital for resource and energy businesses to safeguard assets and maximize ROI over the course of their lifetime. This means identifying and assessing the risks associated with the assets of an organization, including physical assets, like equipment and buildings, as well as intangible assets, such as intellectual property and data.

The first step is to identify and name its assets. In the ideal scenario, each asset should have a person in the company that has the responsibility and authority over it. These individuals know the risks associated with their assets and are able to manage those risks effectively. These stakeholders should be consulted by the risk management department to review possible threats and vulnerabilities.

The company can then prioritize the risks that are identified. This is typically determined by the likelihood of occurrence and the impact of each risk on the business. Priority risks should receive the greatest attention, the investment and security implementation. Other risks need to be addressed by focusing on the company’s operational requirements and regulatory compliance.