Asset and Risk Management for Energy and Resources Companies
For any industry it’s essential to have an effective asset and risk management process in place. This is particularly true for the financial industry, since insurers rely on the premiums they collect from policyholders to invest in assets to generate revenue and maintain their solvency. Assets can be volatile, and it is important that investors manage their investments well. This includes knowing when to take on more risk or less risk in order to reach their goals.
Furthermore, a thorough asset and risk management process is crucial for energy and resource companies to safeguard their assets and earn the highest ROI throughout their lifespan. This means identifying and assessing the risks that are associated with the assets of an organization, including physical, such as buildings and equipment, and intangible assets, such as intellectual property and data.
First, a business should identify and name its assets. In the ideal scenario, each asset would be assigned a named owner who is accountable and has authority over the asset. They are the people who are most familiar of the risks associated with their particular assets and can mitigate them effectively. These stakeholders should be consulted by the risk management department to evaluate the risk and vulnerability.
From there, a business must prioritise the identified risks. This is usually done according to the probability of the risk occurring and its impact on the business. Priority risks should receive the most attention, including investment, and security implementation. Other risks must be addressed based on the business’s operational requirements and regulatory compliance.