Risk and asset management involves the process of identifying, assessing, and reducing the risk associated with assets of an organization. This includes both tangible assets like buildings and equipment and intangible ones such as intellectual property and data. The aim is to safeguard the value of these assets and to ensure that they are used efficiently to achieve business goals.
To carry out a successful asset risk assessment, it is crucial to first determine all assets of a business. This includes both tangible assets and intangible assets like customer lists or intellectual property. After identifying all assets, the next step involves the assessment of the risk associated with each asset. This includes the risk of loss and the risk of unauthorised access or use.
After a company has evaluated the risks that are associated with its assets, it is vital to determine how serious any losses or breaches would be and how those losses can be minimized. This is where an asset management strategy can be beneficial, as it allows companies to create and implement strategies that decrease the chance of risk-related events and mitigate the risk of losses that could occur.
It is also essential to define the operational risks that are associated with the business processes ‘front to rear’ and understand how these risks are related to each of the firm’s products. This will help to provide an understanding of the risks that are faced by each product and help focus efforts on addressing these risks.