Asset and Risk Management for Energy and Resources Companies

For any business it’s essential to have a successful process for managing risk and assets in place. This is especially true for the financial industry, since insurers make use of the premiums from policyholders to invest in assets in order to generate revenue and maintain their financial viability. Assets are prone to volatility, so it is crucial for investors to manage their https://expertalmanagement.de/2023/06/26/positive-effects-based-on-data-room-providers investments wisely and know when to take more risk or risk less to achieve their objectives.

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

A business should first identify and name all its assets. Idealy, each asset should be assigned a named owner who is responsible and has authority over it. These individuals are most familiar about the risks that come with their respective assets and can mitigate them effectively. These stakeholders should be consulted by the risk management department in order to determine possible threats and vulnerabilities.

The company can then prioritize the risks identified. This is typically dependent on the probability of occurrence and the impact of each risk on the business. Priority risks must be given the most attention, as well as the investment and security implementation. Other risks should be addressed as required while considering the business’s operational needs and regulatory compliance.

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