Asset and Risk Management for Energy and Resources Companies

In every industry, it’s critical to have an effective asset and risk management process in place. This is especially true for the financial industry, where insurers use the premiums collected from policyholders to invest in assets in order to generate revenue and maintain their financial stability. Assets are volatile, which is why it is essential that investors manage their investments properly. This includes knowing when to take on risk or take a lower risk in order to reach their goals.

Additionally, a successful asset and risk management process is essential for companies dealing with energy and resources to protect their assets and earn the best ROI throughout their lifespan. This involves identifying and taking into account the risks associated with the company’s assets, which include physical assets such as equipment and buildings, as well intangibles, such as intellectual property and data.

A business should i thought about this first identify and name all of its assets. Idealy, each asset should be assigned a named owner who is responsible and has authority over it. They are aware of the risks associated with their assets and can reduce the risks effectively. The risk management department should collaborate with these stakeholders to evaluate the potential risks and vulnerabilities.

The business is then able to decide on the most risky risks to be a priority. This is usually according to the probability of the risk arising and its impact on the business. Priority risks should receive the most attention, along with the investment and security implementation. Other risks must be addressed in accordance with the company’s operational requirements and regulatory compliance.