Asset and Risk Management for Energy and Resources Companies

In every industry, it’s critical to have a well-functioning process for managing risk and assets in place. This is particularly 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 viability. Assets are prone to volatility, therefore it is essential that investors manage their investments well. This means knowing when to take on more or less risk in order to achieve their goals.

Additionally, a successful asset and risk management process is vital for energy and resources companies to protect their assets and get the highest ROI over their lifespan. This includes identifying and analysing the risks posed by the assets of an organization – which includes physical assets like equipment and buildings, as well as intangibles, such as intellectual property and data.

The business must first determine and name all its assets. The ideal is that each asset should have an owner within the organization with the authority and responsibility for it. They are the people who are most familiar of the risks associated with their respective assets and can manage them effectively. The risk management team should work with these stakeholders in order to identify potential threats and vulnerabilities.

Then, a business should prioritize the identified risks. This is usually dependent on the probability of occurrence and the effect of each risk on the business. Priority risks should receive the greatest attention, investment, and security implementation. The other risks should be addressed as needed while considering the company’s needs for operations and regulatory compliance.

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