Asset and Risk Management for Energy and Resources Companies

https://expertalmanagement.de/2022/06/21/expedite-an-ma-process-with-the-data-room-for-due-diligence

In any industry it’s crucial to have a well-functioning asset and risk management process in place. This is particularly true for the financial industry, since insurers utilize the premiums received from policyholders to invest in assets to generate revenue and ensure their financial viability. Assets can be volatile, and it’s essential for investors to be able to manage their investments effectively – this includes knowing when to take on more risk or take fewer risks to achieve their objectives.

A sound asset and risk management strategy is vital for resource and energy businesses to safeguard assets and increase ROI over their lives. This entails identifying, assessing, and addressing the risks associated with the assets of an organisation which includes tangibles such as 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 a person in the organization that has responsibility and authority over it. These individuals are most familiar about the risks that come with their respective assets and can help to mitigate them effectively. These people should be consulted by the risk management department to assess possible threats and vulnerabilities.

Then, a business should prioritize the identified risks. This is usually by assessing the probability of the risk happening and its impact on the business. Risks that are most important should be given the most attention, along with investment, and security implementation. Other risks should be addressed as required, while taking into consideration the business’s operational needs and regulatory compliance.