Asset and risk management is the process of identifying, assessing and reducing risks that are related to an organization’s assets. This covers physical assets such as buildings and equipment as well as intangible assets, like intellectual property and data. The aim is to safeguard the value of these assets, and ensure that they are being used effectively to achieve business goals.
To conduct an effective asset risk assessment The first step is to recognize all the assets of a business. This includes both physical assets, as additionally intangible assets such as intellectual property and customer lists. Once all the assets of a business have been identified, the next step is to determine the risks associated with each. This includes both the dangers of loss and of unauthorized use or access.
After a company has analyzed its risks, it’s essential to assess the extent of any breaches or losses and how they can be reduced. This is where a good asset management plan will help, since it allows companies to create and implement strategies that lower the risk of occurrence and reduce any losses that could occur.
It is also essential to understand the operational risks that impact the business process ‘from front to back and comprehend how these risks are related to each of the firm’s products. This will give information and understanding of the risks posed by each product, and help in prioritizing efforts to mitigate those risks.